Corporate bonds are debt securities issued by companies, NBFCs, or corporations to raise capital.
Purpose: Lending money to the issuer, who pays fixed returns through interest and principal payments.
Payments: Bonds have a maturity date, with interest and principal payments made monthly, quarterly, or semi-annually at a predetermined rate.
Safety: Considered relatively safer than stocks/equities.
Credit Ratings: Independent agencies like CRISIL, ICRA, CARE assess financial health and assign credit ratings. Higher ratings indicate lower risk.