Are corporate bonds with strong economic strength as safe investment products as national debt?

Corporate bonds with strong economic strength, like national debt, are very safe investment varieties, but any investment has risks and should be psychologically prepared. Corporate bonds refer to loan certificates issued by joint-stock companies to increase capital in a certain period of time. 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.

First of all, the size of the bond yield mainly depends on the following factors:

1, bond coupon rate. The higher the coupon rate, the greater the bond yield, and vice versa. The main reasons for the interest rate difference are the benchmark interest rate level, remaining term, issuer's credit and market liquidity.

2. The market price of bonds. The lower the purchase price of bonds, the higher the selling price, and the greater the difference between investors' income and their income;

3. Frequency of interest payment. During the validity period of bonds, the higher the frequency of interest payment, the greater the compound interest income of bonds, and vice versa;

4. Bond holding period. Other things being equal, the longer investors hold bonds, the greater their income, and vice versa.

Second, the risk of corporate bond investment

1. Interest rate risk. Interest rate is one of the important factors affecting bond prices. When interest rates rise and bond prices fall, there is risk. The longer the remaining maturity of bonds, the greater the interest rate risk.

2. Liquidity risk, bonds with poor liquidity make it impossible for investors to sell bonds at reasonable prices in a short time, thus suffering reduced losses or losing new investment opportunities.

3. Credit risk refers to the losses caused to bond investors by the failure of bond issuing companies to pay bond interest or repay principal on time.

4. Reinvestment risk. Buying short-term bonds instead of long-term bonds will have the risk of reinvestment. For example, the interest rate of long-term bonds is 14%, and the interest rate of short-term bonds is 13%. To reduce interest rate risk, buy short-term bonds. However, if the interest rate falls to 65,438+00% when the short-term bonds recover cash at maturity, it is not easy to find investment opportunities higher than 65,438+00%. It is better to invest in current long-term bonds and still get a return of 14%. In the final analysis, reinvestment risk is still an interest rate risk problem.

5. Recoverable risk, specifically to bonds with recoverable clauses, because it often has the possibility of compulsory recovery, and this possibility is often that when the market interest rate drops and investors charge the actual increased interest according to the nominal interest rate of bonds, a good cake often has the possibility of recovery, and our investors' expected income will suffer losses, which is called recovery risk.

6. Inflation risk refers to the risk that the purchasing power of money will decrease due to inflation. During the period of inflation, the investor's real interest rate should be coupon rate minus the inflation rate. If the bond interest rate is 10%, the inflation rate is 8%, and the real rate of return is only 2%, the purchasing power risk is the most common risk in bond investment.