bondskart

Private sector bonds are debt securities issued by corporations to raise capital for various purposes, such as funding operations, expansions, or acquisitions. When investors purchase these bonds, they essentially lend money to the company, which promises to repay the principal amount at a specified maturity date, along with periodic interest payments, known as coupon payments. The creditworthiness of the issuing company is a key factor influencing bond yields; higher risk generally translates to higher yields to compensate investors. These bonds offer investors a fixed-income stream and can be a valuable component of a diversified portfolio, though they carry risks including default risk and interest rate risk.