A bond is a portion of a loan issued by a company, a public-sector entity or a national government (i.e., the issuer). A bondholder generally receives an interest coupon periodically that is calculated on the basis of the bond’s nominal value. Upon maturity, the bond is repaid by the issuer and the investor recovers his initial investment.
This type of investment offers the advantage of visibility, as bond yields are composed of interest and repaid principal. It offers potential gains and risk that are intermediate among the various asset classes.
There are many categories of bonds with various features. CPR AM’s teams operate across the entire spectrum of bond investments with a wide range of traditional or innovative solutions.