{"id":260215,"date":"2024-02-28T10:21:33","date_gmt":"2024-02-28T10:21:33","guid":{"rendered":"https:\/\/imarticus.org\/blog\/?p=260215"},"modified":"2024-05-07T09:52:07","modified_gmt":"2024-05-07T09:52:07","slug":"all-about-bonds-bond-offerings-and-the-role-of-investment-banks","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/all-about-bonds-bond-offerings-and-the-role-of-investment-banks\/","title":{"rendered":"All About Bonds, Bond Offerings and the Role of Investment Banks"},"content":{"rendered":"

The world of investing looks quite complex but despite that, the modern generation seems to be more interested in it. People are more conscious of their money and the best channels of investment for it. When we talk about investments, it is important to start with understanding bonds, as it is one of the stable choices within the volatile realm of investments.<\/span><\/p>\n

In this article, we will unravel everything from the fundamental nature of bonds to the contribution of investment banks in bond offerings. This information is not only helpful for any investor but for anyone who wants to pursue a <\/span>career in investment banking<\/span> or <\/span>capital markets<\/span><\/a>.<\/span><\/p>\n

Let us delve into the fascinating world of one of the most reliable financial instruments.\u00a0<\/span><\/p>\n

Understanding the Financial Instrument-Bond<\/span><\/h2>\n

A bond is essentially a debt security, a loan made by an investor to a borrower, typically a government or corporation. Here, the issuer of the bond borrows a specified amount, known as the principal against which they agree to make periodic interest payments, usually twice a year. This culminates in the repayment of the principal upon maturity. Bond prices are inversely proportional to interest rates: when the rate goes up, the bond price falls and vice-versa.<\/span><\/p>\n

Unlike stocks of a company, bonds do not give any ownership rights. This means that bonds signify a creditor-debtor relationship, emphasising stability and regular income.\u00a0<\/span><\/p>\n

The key characteristics of bonds are:<\/span><\/p>\n