# Corporate Bond

*Markets & Instruments — Finicade finance glossary*

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.

**Also known as:** company bond, corporate debt

**Related terms:** [Bond](https://finicade.com/glossary/bond), [Credit Spread](https://finicade.com/glossary/credit-spread), [Credit Rating](https://finicade.com/glossary/credit-rating), [Investment Grade](https://finicade.com/glossary/investment-grade), [High-Yield Bond](https://finicade.com/glossary/high-yield-bond)

Source: https://finicade.com/glossary/corporate-bond