Investing in business
Corporate bonds are offered by corporations looking to raise capital. When you invest in corporate bonds you are loaning your money to a corporation (or company) in return for interest payments made for the duration of the loan period.
Interest payments on corporate bonds are usually fixed and can be made on a monthly, quarterly, or annual basis.
There may be some risk involved in investing in corporate bonds. For example, if the corporation you are invested in does particularly badly or goes bust you could lose your interest payments, your capital or both. Corporate bonds are issued by different companies at varying rates of interest. Generally speaking, the more secure a company is, the lower the rate of interest it will need to attract investors. Visit our corporate bonds risk page to find out more.
For advice on corporate bonds, or to discuss you investment options speak to an independent investment advisor: