If I buy individual corporate bonds and the company go in receivership, what happen to my money?
What is the process? Can I ever get my money spinal column?
Answers: No, not necessarily. You take on that risk when you invest contained by anything you can loose all your money. When a company is liquidate the only protection is that as a debt holder you are greater up on the capital structure to hold a chance of getting something rear legs. Traditionally assets are liquidated and first within line are those who hold collatoralized debt, subsequent would be non-collatoralized debt, and then if near is anything left equity holders. A bond would be a non-collatoralized debt. Its approaching anything else the risk of investing in a corporate bond is credit risk. A corporate bond is essentially you loaning money to the company. That's why bond ratings are so key they give you an opinion of how the financial situation is with the company. That's also why companies next to low ratings have to compensate higher coupon rates, its a track of "rewarding" bondholders for taking on greater risk.
You will loose it all.
Can I buy GTC Industries?
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How do you brand name 1million dollars over darkness?
Why is the NYSE floor so dirty?
Answers: No, not necessarily. You take on that risk when you invest contained by anything you can loose all your money. When a company is liquidate the only protection is that as a debt holder you are greater up on the capital structure to hold a chance of getting something rear legs. Traditionally assets are liquidated and first within line are those who hold collatoralized debt, subsequent would be non-collatoralized debt, and then if near is anything left equity holders. A bond would be a non-collatoralized debt. Its approaching anything else the risk of investing in a corporate bond is credit risk. A corporate bond is essentially you loaning money to the company. That's why bond ratings are so key they give you an opinion of how the financial situation is with the company. That's also why companies next to low ratings have to compensate higher coupon rates, its a track of "rewarding" bondholders for taking on greater risk.
You will loose it all.