Popularity of retail bonds

Three ways for investors to enter market

A bond is a loan or IOU that allows a company, institution or government body (known as “the issuer”) to borrow money from the public (“the bondholder”). Like any loan, the terms of the bond such as maturity, coupon or interest rate, and debt seniority are determined at the outset. Throughout the “loan term” of the bond, the issuer pays a fixed coupon rate (usually semi-annually or annually), with the full principal amount repaid upon maturity.