- Corporate bonds can be a real alternative to government bonds.
- Speaks for them, among other things, that many of the companies after the financial and economic crisis equipped with solid capital and liquidity.
- The default rate on corporate bonds is historically low.
- Must be applied to the bond market, however the same rules as the stock market. So it gives higher returns even at the cost of a higher risk. This is especially true for SME loans. This risk, you should be very aware as an investor.
- Buy only bonds that can also hold to maturity. With that, a certain time horizon is connected. Who wants to sell before maturity, should definitely pay attention to the liquidity of a bond.
- Speaks for them, among other things, that many of the companies after the financial and economic crisis equipped with solid capital and liquidity.
- The default rate on corporate bonds is historically low.
- Must be applied to the bond market, however the same rules as the stock market. So it gives higher returns even at the cost of a higher risk. This is especially true for SME loans. This risk, you should be very aware as an investor.
- Buy only bonds that can also hold to maturity. With that, a certain time horizon is connected. Who wants to sell before maturity, should definitely pay attention to the liquidity of a bond.
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