Author(s)

Lin Wang ¹

Affiliation(s)

¹ Columbia University, New York, USA

Corresponding Author

Lin Wang

ABSTRACT

Corporate bonds, which are often used for corporate fundraising, are yet another vehicle that is found to be of utmost importance in the global financial markets. These are unsecured debt securities issued by corporations to investors willing to risk funds and, in turn, receive periodic interest payments and the principal repayment at the maturity of this debt (Bali et al., 2021). The main value of corporate bonds as a financial instrument for companies is their ability to help them get the financial resources they need for several reasons – for example, for their business expansions, acquisitions, or meeting their day-to-day working capital needs – through supplying investors with a fixed-income return. In this paper, the researcher investigates how corporate bonds evolved by first embarking on a historical overview, analyzing the market dynamics, scrutinizing regulatory shifts, and investor behavior. Through such analysis, looking into the history and highlighting some major trends and milestones, the researcher aspires to come up with an accurate depiction of how corporate bonds have come to form an indispensable part of the whole financial cycle. By taking a deep dive into the root causes of events and presenting graphs to explain, this journal will provide a thorough analysis of the corporate bond past, present, and future, helping one to understand the role played by corporate bonds in financial markets and as corporate financing tools.

KEYWORDS

Corporate Bond, Financial Markets, Corporate Finance, Market Dynamics

CITE THIS PAPER

Lin Wang, Evolution of Corporate Bond. Accounting, Auditing and Finance (2024) Vol. 5: 18-27. DOI: http://dx.doi.org/10.23977/accaf.2024.050304.

REFERENCES

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