How to Invest in Corporate Bonds
When you lend a corporation money, your fixed returns transcend any stock price volatility.
By Lou Carlozo, Contributor • Sept. 3, 2019
There’s a certain swagger that goes with saying you own stocks. The label “shareholder” conjures some combination of savvy gambler and calculated risk taker. You own a piece of the action and if a company hits the jackpot, you get to brag; if it tanks, you can always whistle and change the subject to “Game of Thrones” reruns.
Company bondholders, by contrast, get no such bragging rights. In fact, many investors who love stocks couldn’t tell you the difference between a company bond, a bail bond and those U.S. Savings Bonds Aunt Winnie used to dole out with boxes of marzipan candy.