Corporate debt is a type of fixed income security that is issued by corporations. It is a loan that investors make to a company, and in return, the company pays interest on the loan and repays the principal when the loan matures. Corporate debt can be a good investment for investors who are looking for a steady stream of income. It is also a way to diversify a portfolio, as corporate debt is not correlated to the stock market.
There are many different ways to buy corporate debt. One way is to buy individual bonds. Bonds are issued by corporations and have a specific maturity date and interest rate. Investors can buy bonds through a broker or directly from the issuing company. Another way to buy corporate debt is to buy mutual funds or exchange-traded funds (ETFs) that invest in corporate bonds. This is a good option for investors who want to diversify their investment and don’t want to pick individual bonds.