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Corporate Bonds
Newest Review: ... be fine, but make sure it fits with your individual needs. So, why do different Corporate Bonds pay different rates? Well, as well as the different ways of charging investors, there is also the risk profile of the companies lent to. M&G quote 5% for their Gilt & Fixed Interest Fund. Seems a bit average, but ... more  ... because of the exposure to Gilts (a loan to the government, as opposed to a loan to a business) th e investment is safer. Halifax quote 6% for their Corporate Bond fund. They only lend to companies with AAA ratings (companies considered to be financia...more |
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Corporate Bonds: Twice the rate of a building society (1005 words)
by opinions4u - written on 23.04.03 (Very useful, 846 readings)
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Well, if you can make more than 4% interest on your savings in the current climate you are doing a fine job of managing your money. For the context of the review, with a bank or building society investment, you are effectively lending your money to the bank to lend to someone else to buy a house. It should be as safe as houses. But what are those weird and wonderful bond things that you see in the financial press, advertising returns of 6%, 7% or even 8%! They are Corporate Bonds! Still none the wiser? Well, in short, a Corporate Bond is a loan to a business. Simple as that. You lend a company your money, they invest it in their business ...
Corporate Identity (1409 words)
by SueMagee - written on 21.08.01 (Very useful, 274 readings)
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Corporate Bonds sound rather impressive, don’t they? In certain circumstances they not only sound impressive, they’re also useful. Let’s have a look at where they fit into your investment strategy. The first thing you should do when you start building up some savings is to make certain that you’ve got an emergency fund of about three months’ income for when disaster strikes. Everyone’s got their own emergencies lurking round the corner with a foot stuck out waiting to trip you up. The money may not solve the problem, but it certainly makes it easier if you don’t have to worry about finance at the same time. Make ...
