QUICK DEFINITION
Corporate Bond is a debt security issued by a company rather than a sovereign or public-sector issuer.
WHY IT MATTERS
Why Corporate Bond matters in bond markets
Corporate bond yields combine the underlying interest-rate environment with compensation for credit and liquidity risk.
MARKET CONTEXT
How to think about it
Bond investors use corporate bond as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Corporate Bond important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Corporate bond yields combine the underlying interest-rate environment with compensation for credit and liquidity risk.