Corporate

Why Invest in Corporate Bonds

Corporate Bonds are issued by corporations to fund their operations . They represent debt on companies balance sheet and  offer attractive interest rates compared to government bonds to attract investors. They are rated by Rating agencies based on the safety of principal and their ability to pay interest. Ratings can vary from investment grade to junk . They provide an opportunity to diversify among various coupon structures, sectors, maturities etc to meet investment objectives. They inherently carry credit risk.

Key indicators to consider before investing 

  • Interest Rate
  • GDP
  • Business Cycle

Top 5 ETF’s by Market Capitalization

Name of the Fund Ticker Symbol /Total AUM* Year of Inception Expense Ratio
iShares  IBoxx $ Investment Grade Corporate Bond LQD 07/22/2002 0.15%
 Vanguard Short Term Corporate Bond  VCSH  11/19/2009 0.07%
 Vangaurd Intermediate-Term Corporate Bond  VCIT  11/19/2009  0.07%
 iShares Intermediate Credit Bond  CIU 01/05/2007 0.20%
Vanguard Long Term Corporate Bond VCLT 11/19/2009 0.07%

 

 

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