Beginner's guide to corporate bonds

By Deputy editor Tim Bennett Nov 18, 2010

Tim Bennett

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The second part of Tim Bennett's introduction to bonds. Tim looks at corporate bonds: why companies issue bonds, what affects bond prices, the key risks associated with bonds, and the role of ratings agencies.

• Watch all of Tim's video tutorials here

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Published in Video tutorials | More articles by Tim Bennett

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  • 1. Butting

    (19 November 2010, 12:51PM)  Complain about this comment

    This assumes interest rates are following inflation.

    Now western central banks have planned entirely other future for bondholders of all sorts bonds, especially for those in China.

  • 2. DC88

    (19 November 2010, 01:43PM)  Complain about this comment

    To be be fair, this seems like a very good description of the mechanics of corporate bonds and how they are priced relative to other sources of fixed interest.

    For sure, the special case of inflation being well above bond yields (as we have now in the UK) brings up a wider question of asset allocation.

  • 3. Lupulco

    (30 January 2012, 03:00PM)  Complain about this comment

    Your video Bonds part 1 & 2 are very informative.
    I have investments in shares, which i am comfortable within, regarding the FTSE as the largest on-line game there is.
    A] you win, great.
    B] you break even, so what, i have had interesting time.
    C] you lose put it down to experience and move on.
    Now my problem, I am working on not having more then 40% of my capitol in Shares. I am 60+
    I am looking at the Bond market, hoping to buy when the bond is at the £100 base line,[+/- 5% therefore maximise my % and hopefully create a income stream.
    Now the but, the rating agencies have made one or two errors. can i really trust them, or just rely on my gut instinct and stick to large FTSE100 companies when their bond price falls within my parameters
    What i am looking at is bettering the Long term fixed Cash ISAs offered by Banks/Building Societies.

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