Bonds are clearly more advantageous that other forms of securities and this is true for even the Canadian market. Bonds, especially those that are medium or short dated bonds, have less volatility when compared to equities (stocks). Therefore, it is right to assume a bond as a safer investment as compared to a stock. Moreover, bonds are liquid assets, making them easier to be sold in large quantities, without much effect in their prices, which can be difficult in the case of equities. What makes bonds even more attractive is the guarantee of a fixed sum at the end of maturity and a comparative certainty of being able to enjoy a fixed rate of interest payment.
Bondholders also receive protection under the Canadian law, whereby if a company goes bankrupt; its bondholders will at least receive back the recovery amount. In the case of equities, a company’s bankruptcy can render them valueless. Bonds also come with indentures and covenants. Covenants dictate the rights of the bondholder as well as the duties that the issuer has, while indentures include formal debt agreement establishing the terms surrounding a bond issue. This provides additional security and clarity to the bondholder.
It is wise to approach a professional, while investing in bonds, owing to the legal complexities that such items include. Here at Best Capital Bonds, we aim to make investing easy and smooth. With years of experience and expertise, we guarantee an 8% fixed income rate on a yearly basis; we guarantee that the investors are paid first, and also provide you with peace of mind, treating your investments as if they were our own. Contact us at the earliest to start investing in your desired bonds and to clarify any lingering doubt.