Corporate Bonds, How Safe are They and What Happens if a Company Defaults.

Bonds are backed by the financial strength of the bond issuer. If the bond issuer is not able or chooses not want to pay, a bond can be in default. The reasons for default can vary from inability to pay to a desire to reduce the actual bond’s obligation. While US Treasury securities never default, corporate bonds default on a regular basis.

By |2020-04-12T23:32:24+00:00May 12th, 2019|Financial Planning|