Secured bonds
Debt supported by a defined security package.
Security value and enforceability can disappoint in distress.
R3 · Investment research guide
Corporate Bonds
A corporate bond is a contractual loan to a company. Coupon is easy to see; repayment capacity, seniority, security, covenants and liquidity determine whether the extra yield is worth taking.
Page type: Education and comparison only · Not transacted through AssetsNest
The main options
The available routes solve different problems.
TypeWhere it may helpPrincipal risk
Unsecured bonds
Issuer-backed contractual income without specific collateral.
Recovery depends more heavily on issuer strength and ranking.
Convertible bonds
Debt exposure with terms that may convert into equity.
Valuation, dilution and complex conversion conditions.
Perpetual bonds
Long-duration or perpetual income instruments.
Call, deferral, subordination and interest-rate sensitivity.
Listed NCDs
Exchange-listed corporate debt with disclosed issue terms.
Listing does not guarantee liquidity or repayment.
A useful decision sequence
Start with fit—not the highest displayed return.
- 1
Analyse operating cash flow and leverage
- 2
Read security and seniority terms
- 3
Understand coupon, yield and maturity
- 4
Check calls, puts and covenants
- 5
Model default and realistic recovery
Research note · Framework reviewed August 2026
Coupon is income promised; expected loss is income at risk
Two bonds with the same coupon can have very different values. Credit analysis converts the headline yield into questions about default probability, recovery, liquidity and the investor’s place in the capital structure.
Illustrative coupon
Visible cash income before price, tax and credit events.
Assumed credit loss
5% default probability and 40% recovery imply 60% loss severity.
Expected credit loss
A probability-weighted estimate—not the maximum possible loss.
Expected loss is not worst-case loss
If default occurs, the realised loss can be far larger than the probability-weighted estimate. Recovery may also take years and require legal enforcement.
Listing does not create buyers
An exchange-listed bond can remain difficult to sell near a defensible value, particularly during issuer stress.
Yield can be compensation—or a warning
A higher yield may compensate for genuine credit and liquidity risk. The job is to identify which risk is being paid for and whether the spread is adequate.
Two useful cases
See the decision in the real world.
IL&FS changed how investors viewed high-rated debt
SEBI’s review of liquid-fund risk management noted that IL&FS group defaults in September 2018 led to volatility across debt and money-market instruments issued by NBFCs. The episode showed why ratings and institutional parentage cannot replace cash-flow and refinancing analysis.
SEBI liquid-fund risk review ↗Same coupon, different downside
Two bonds can both pay 9%, yet one may be senior secured with strong interest coverage while the other is subordinated and callable. The coupon alone cannot reveal the probability or severity of loss.
Illustrative example only; not a recommendation or promise of outcome.What this guide provides
A framework for a better-informed decision.
This is a general corporate-bond education and comparison guide. Bond placement or execution is not available through AssetsNest.
AssetsNest begins with the goal, existing portfolio, time horizon and concern—not with a preselected product.
- Explains yield alongside issuer cash flow, leverage, security, seniority and covenants.
- Separates coupon, yield to maturity, call risk, duration, liquidity and recovery assumptions.
- Provides a checklist for reading current offer documents, ratings and exchange disclosures.
- Shows how a bond may change portfolio income and credit concentration.
Use this framework for due diligence. Any transaction must use the relevant issuer, exchange or appropriately registered bond platform.
AssetsNest does not present a corporate-bond placement, distribution or execution service on this page.
Listing or a credit rating does not guarantee repayment, liquidity or a particular exit price.
Frequently asked
Short answers to important questions.
Is a listed corporate bond safe?
Listing can improve disclosure and access, but it does not guarantee repayment or liquidity.
Is coupon the same as yield?
No. Coupon is based on face value; yield also reflects the price paid, time to cash flows and redemption terms.
Does a credit rating remove the need for analysis?
No. A rating is one input and can change. Terms, cash flow, leverage, security and concentration still require review.
Can I transact corporate bonds through AssetsNest?
No. AssetsNest currently provides general bond education and comparison only. Any transaction must use the relevant issuer, exchange or appropriately registered bond platform after reviewing current documents and risks.