The difference between corporate bonds and corporate bonds
1, different issuers
The issuer of corporate bonds is a joint-stock company or a limited company, which belongs to the legal rights of the company, and the success of the issuance is determined by the market. Corporate bonds are generally issued by government agencies and state-owned enterprises, and the issuance requirements will be more stringent.
2. Financing purpose
The purpose of issuing bond financing by corporate bonds is for the company's own business needs or company development (adjusting the company structure, reducing the company's expenditure cost, promoting the company's development or asset restructuring, etc.). ). The funds raised by issuing corporate bonds will generally be used for infrastructure construction and investment in fixed assets. , involving public welfare investment or government investment projects.
3. The circulation market is different.
The company's creditors mainly circulate in the stock exchange, which is relatively open, and the price is also determined by the issuing company through the market. Corporate bonds are mainly circulated in the banking market, and the price is determined at no higher than 40% of the resident time deposit interest rate in the same period.
4. Different regulatory agencies
For corporate bonds, china securities journal will examine whether the materials of the bond issuing company comply with the provisions of laws and other systems. Corporate bonds are generally audited by the state, so they are usually stricter than corporate bonds.
5. The credit for issuing bonds is different.
Corporate bonds are generally based on their own assets, operating ability or profitability. Corporate bonds are mainly issued on the basis of national government credit, and the guarantee mechanism is enforced.
Which is better, corporate bonds?
Judging from the difference between corporate bonds and corporate bonds, corporate bonds are relatively better than corporate bonds. Although corporate bonds are more flexible in application, they are obviously superior to corporate bonds on the basis of issuers and credit!