1, issuer
The issuer of corporate bonds is a joint stock limited company or a limited liability company. Urban investment bonds are a kind of "corporate bonds", and the main issuer is local urban construction investment companies.
2. Purpose of issue
Both corporate bonds and urban investment bonds are issued for financing purposes, but there are no special restrictions on the use of funds raised by corporate bonds, including fixed asset investment and technological transformation.
The funds raised by urban investment bonds are mainly used for urban infrastructure construction and public welfare projects, so urban investment bonds are closely related to local governments, and are also called "quasi-municipal bonds".
3. Risk level
The risk level of corporate bonds depends on the operating conditions and profitability of the issuing companies, and the credit ratings of corporate bonds issued by different companies vary greatly.
Urban investment bonds operate in a similar way to corporate bonds. Although the issuer is an enterprise, its role is to raise funds for municipal construction. Local governments give certain policy support to enterprises that issue urban investment bonds, which plays an invisible guarantee role for local governments. In fact, many investors also regard it as a bond issued by local governments. Therefore, the credit rating of urban investment bonds is higher than that of corporate bonds.
4. Term of bonds
The issuance period of urban investment bonds is mainly 3-7 years, and the expected rate of return is relatively low, with an average interest rate of around 5%. Corporate bonds can be divided into long-term bonds, medium-term bonds and short-term bonds. Generally, short-term bonds are within 1 year, and long-term bonds can reach1year.
The above content about the difference between city investment bonds and corporate bonds, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.