Bonds
A bond is simply a loan with a definitive instrument features taken (issued) by an entity from the lender. Here, the entities taking a loan could be governments (central, state or
municipal bodies) or companies (PSUs, private corporates, financial institutions etc) and are called as Issuers.
The corporate bond market (also known as the non-Gsec market) consists of financial institutions (FI) bonds, public sector units (PSU) bonds, and corporate bonds/debentures.
The lender could be individuals, corporates, mutual funds, banks or anybody who invests in order to receive periodic income and are called as Investors.
Corporate Bonds
Corporate bonds are debt securities issued by private and public corporations.
Bond is simply a loan between the issuer (borrower) and the bondholder (lender). When you purchase a bond, you are lending money to any entity known as issuer. In return, you
receive a bond and issuer pays fixed interest on the amount of money you lend.