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Investors buy corporates for a variety of
reasons:
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Attractive yields Corporates usually offer
higher yields than comparable-maturity government bonds or CDs. This
high-yield potential is generally accompanied by higher risks.
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Dependable income People who want steady income
from their investments, while preserving their principal, include corporates
in their portfolios.
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Safety Corporate bonds are evaluated and
assigned a rating based on credit history and ability to repay obligations.
The higher the rating, the safer the investment.
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Diversity Corporate bonds provide the
opportunity to choose from a variety of sectors, structures and
credit-quality characteristics to meet your investment objectives.
-
Marketability If you must sell a bond before
maturity, in most instances you can do so easily and quickly because of the
size and liquidity of the market.
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