Posts

Showing posts from August, 2024

GIM Trading Reviews Corporate Bonds: A Reliable Yet Overlooked Investment Option

Image
GIM Trading Reviews How Corporate Bonds Work as a Reliable Investment Option In the world of finance, there are plenty of complex terms and investment products that require significant knowledge to fully understand. From zero-coupon inflation swaps to modified internal rates of return, it’s easy to get lost in the jargon. But one term that consistently deserves attention is bonds—especially corporate bonds. At GIM Trading , we believe bonds, while often misunderstood, offer a dependable and secure investment option. Like shares or ETFs, bonds can be purchased through a broker, but their structure and function are more comparable to a term deposit. This makes them a reliable source of fixed income, often overlooked by everyday investors despite the size and stability of the bond market. How Bonds Work Corporate bonds are issued by companies or governments as a way to raise capital. For example, a company might issue $10 million worth of bonds with a two-year maturity and offer a 5