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corporate bond

corporate bond

4 3.7
A loan from a company that pays regular interest but gives no ownership
  • noun
  • /ˈkɔːrpərɪt bɑnd/
  • Specialized
translation icon : bono corporativo
  • Investors typically seek higher returns by purchasing a corporate bond rather than a government bond.
  • corporate bonds yield
  • corporate bond fund
  • high-yield corporate bonds

They've been buying stocks, they've been buying corporate bonds, they've been buying ETFs.

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Examples

  • In addition, possibly because of the Arab boycott, Israeli corporate bonds were issued offshore in order to attract foreign investors.

    Academic text (1995)
  • So one of the most significant concerns of pricing corporate bonds is default risk.

  • I could buy corporate bonds, OK?

  • If commercial paper and corporate bond markets are unable to deliver sufficient financing, rates in those markets would be high.

    Academic text (2003)
  • For example, corporate bonds are exposed to all three of the above risks.

    Blog text (5)
  • They began buying up corporate bonds and even stocks.

  • As an alternative to seeking bank financing, America's large corporations thankfully have had access to a healthy corporate bond.

    Academic text (2010)
  • US Treasuries gained an average of 37%, and corporate bonds gained 32%.

    Blog text (34)
  • Egypt passed a capital-markets law in 1993 establishing, among other things, mutual funds and the possibility of issuing corporate bonds.

    Academic text (1995)
  • With short-term interest rates having reached the zero bound, unconventional monetary policies (i.e., extensive government and corporate bond purchases) have nudged long-term interest rates further downward.

    Academic text (2018)

Antonyms

government bond
  • Specialized
14 2.7

A loan to a government that pays interest over time and is usually safe

municipal bond
  • Specialized
10 4.4

A loan a city or state sells to pay for public projects, often free from federal taxes

How Risky

junk bond
  • Specialized
33 7.0
corporate bond
  • Specialized
4 3.7
government bond
  • Specialized
14 2.7

Surface Forms

Morphology

corporate + bond

The meaning 'a bond issued by a corporation' is directly and compositionally derived from 'corporate' (relating to a corporation) + 'bond' (a debt instrument). This is a regular noun–noun compound with no idiomatic shift and has clear cross-linguistic parallels, so a B1 learner who knows both constituents would readily understand it.

Etymology

Corporate bond combines corporate (a company) and bond (a written promise to pay). Picture a company giving you a paper promise that pays regular interest and then returns your money — a kind of 'loan' to the company, not a share that gives 'ownership'.