Do credit bonds include financial bonds?

As we all know, in the securities market, bonds are mainly divided into interest rate bonds and credit bonds. Since the two can exist, they are naturally different and can be distinguished by people. Among them, credit bonds, without specific assets as collateral, rely entirely on the credit issuance of the issuing company. So, do credit bonds include financial bonds?

Do credit bonds include financial bonds?

Credit bonds do not include financial bonds, and credit corporate bonds belong to corporate bonds. Credit bonds have no collateral, and usually only enterprises with strong financial strength are eligible to issue such bonds. Financial bond is a kind of securities issued by financial institutions as the main body of financing for individuals, which belongs to the active liabilities of financial institutions such as banks. In most cases, the role of financial bonds is to solve the problems of insufficient sources of funds and maturity mismatch of financial institutions.

What does a credit bond include?

Credit bonds mainly include corporate bonds, corporate bonds, short-term securities lending, medium-term notes, separate convertible bonds, asset-backed securities, subordinated debts and other varieties. Credit bonds refer to bonds issued by entities other than departments, which stipulate certain principal and interest to pay cash flow. Credit bonds are not mortgaged and are issued according to personal credit.

Generally speaking, credit bonds are not financial bonds. In the national regulations, credit bond is a kind of securities with high risk of credit lending. In contrast, financial bonds refer to policy financial bonds issued by policy banks. Financial bonds usually refer to financial bonds issued by commercial banks and other non-bank financial institutions, which are interest rate bonds to reduce risks.