Comparison of government bonds, financial bonds and corporate bonds

Security: National debt has the highest security because it is a national credit; The credit rating of financial bonds is also very high, almost equivalent to national credit, usually called quasi-national credit; The credit of corporate bonds is lower than the above two, but in China, corporate bonds are guaranteed by banks, so the credit risk is also very small.

Profitability: the coupon income of financial bonds and national debt is similar, but the interest of national debt is tax-free, so the income required by investors will be slightly lower; The yield of corporate bonds is higher than the first two.

Liquidity: All three can be traded in the inter-bank market, and cross-market government bonds and most corporate bonds can also be traded in the exchange. Treasury bonds have the best liquidity, followed by financial bonds, and corporate bonds are the worst.

Extended data

The types of investors are relatively the same; The issuing place is generally the bond market; Government bonds: government bonds are debt certificates issued to investors by the government to raise funds and promise to repay the principal and interest within a certain period of time, including national bonds, namely central government bonds, local government bonds and government-guaranteed bonds.

General treasury bonds are issued by the Ministry of Finance to make up for the imbalance of fiscal revenue and expenditure; Public debt refers to bonds issued to raise construction funds. Sometimes they are also collectively referred to as public debt.

National debt is characterized by high security, strong liquidity, stable income and tax-free treatment.

Financial bonds: Financial bonds refer to bonds issued by banks and other financial institutions. The term of financial bonds is generally 3-5 years, and its interest rate is slightly higher than the interest rate of time deposits in the same period. Because the issuer of financial bonds is financial institutions, the credit rating is relatively high, and most of them are credit bonds.

Bonds are issued in accordance with legal procedures, and they promise to pay interest regularly at the agreed interest rate and repay the principal at maturity. Active liabilities of financial institutions such as banks.

Corporate bonds: Corporate bonds refer to loan certificates issued by joint-stock companies for additional capital within a certain period of time (such as 10 or 20 years). For the holder, it is only a voucher to provide loans to the company, reflecting only an ordinary creditor-debtor relationship. Although the holder has no right to participate in the operation and management activities of the joint-stock company, he can charge the company fixed interest at par value every year, and the order of collecting interest should take precedence over shareholders' dividends. When the joint-stock company goes bankrupt, he can also get back the principal first. Corporate bonds have a long term, generally more than 10 years. Once the bond expires, the joint-stock company must repay the principal and redeem the bond.