Corporate Bond
Also called: company bond, corporate debt
A corporate bond is a loan to a company, repaid with interest on a fixed schedule. Its yield equals a government yield plus a credit spread — the extra compensation for the chance the company fails. That spread is the whole game: it widens in recessions, narrows in booms, and moves with the company's own fortunes. Corporate bonds also trade far less frequently than shares, so prices can be stale and the bid-ask spread wide.
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