2. Corporate bonds are the manifestations of corporate bonds. Based on the issuance of corporate bonds, a legal relationship of creditor's rights and debts is formed between bondholders and issuers with the content of repaying principal and interest. Therefore, corporate bonds are debt certificates issued by companies to bondholders.
First, the main differences between government bonds and corporate bonds:
Bonds issued by the government to raise funds from the public are called government bonds. Government bonds in a broad sense also include local government bonds, government-owned institutional bonds and so on. China's national debt mainly includes treasury bills; Institutional bonds held by the government include "capital construction bonds" and so on. At present, the development of local government bonds in China is slow. Corporate bonds refer to bonds issued by companies to raise funds from the public. The difference between national debt and corporate debt is mainly manifested in the following aspects:
1, the security of national debt is better than that of corporate debt; From the point of view of credit rating, the credit rating of a company in a country can not exceed the credit rating of this country at the highest. For example, on the international bond markets, the Swedish government's long-term bond credit rating is AA. Then the credit rating of any company or enterprise registered in Sweden will not exceed AA.
2. Due to the high security of national debt, the interest rate of national debt is often lower than that of corporate debt during the issuance period. In the secondary market, the yield of government bonds is also lower than that of corporate bonds with the same term. In a country's bond market, the lowest yield is basically the national debt of this country.
3. The issuance of national debt usually greatly exceeds the issuance of corporate bonds. This is mainly because the state is the entity of economic activities. Its demand for capital is often greater than that of the company. The scale of national economic activities is also much larger than that of companies. Because the circulation of government bonds far exceeds that of corporate bonds, the liquidity of government bonds is usually better than that of corporate bonds. In the secondary market, the trading activity of government bonds is much more active than that of corporate bonds.
4. The tax treatment of national debt is often stronger than that of corporate debt. Since issuing treasury bonds is conducive to solving the financial difficulties of the country, the government often takes various measures to encourage investors to invest in treasury bonds, and tax incentives are part of these measures.