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    Back to basics:

    Introduction to corporate bonds and asset backed securities

    Introduction to corporate bonds and asset backed securities

    18 March 2025 Video, Fixed income

    Peter Hall, Client Director

    Peter Hall, Client Director, discusses:

    • Corporate bonds basics: Explaining that corporate bonds are debt obligations where investors lend money to a corporation in exchange for interest payments and the return of the principal at maturity. Peter also discusses the various features of corporate bonds, such as maturity, creditworthiness and coupon rates.
    • An overview of corporate bond markets: Covering issues such as the size of the market in different regions like the US, Europe, and the UK, the differences between investment-grade and high-yield bonds, and the sectors that dominate these markets.
    • Asset-backed securities: Explaining what asset-backed securities are, the benefits of investing in them and the types of assets that can be securitised. There is also a discussion about the way these instruments are structured, including the different types of notes (senior, mezzanine, and junior) and the role of collateral in protecting bondholders.
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