Discover how
Rather than buying a small part of company (via shares) a bond is effectively a loan you make to a company. As such, that company is typically contractually obligated to pay you interest on that loan on the given due dates plus repay your capital over the term of the bond or upon maturity.
Jenna Labib (IAM’s resident bonds expert) explains more about this concept in this easy-to-understand video. She also tells us how to avoid the downside and preserve your capital by choosing the right bonds.
