Corporate Bonds

What are some of the main reasons why investors include corporate bonds within their portfolio?

Aside from the diversification strategy many investors employ, corporate bonds make up a portion of many investors’ portfolios because they offer good yields when compared with same-maturity government bonds, and because of their predictable income while preserving capital. Additionally, since you can see the ratings of various corporate bonds, you may find the bonds with the best ratings that are likelier to repay principal and interest, allowing you to compare your various choices and risks. Additionally, corporate bonds can be sold before maturity to help an investor have more liquidity.


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