Trading Corporate Bonds

What is a corporate bond?

A corporate bond is essentially a loan to a company. In exchange, the company that issues the bond agrees to pay the investor regular interest until the bond’s maturity date, when the original loan amount is returned.

What do bond ratings mean?

Webull’s corporate bond offering uses S&P’s ratings data. S&P assigns ratings from AAA – D based upon the issuer’s creditworthiness. Please see the Fixed Income Glossary for more ratings information.

What types of Corporate Bonds does Webull offer?

Webull offers a wide range of corporate bonds, spanning short-term to long-term maturities (from 30 days to 30 years) and credit qualities from high-grade (AAA rated) to high-yield (C rated). Many publicly traded companies that issue stock also issue bonds available on Webull, along with select private companies that issue public bonds.

How does the risk of U.S. Treasuries and Corporate Bonds differ?

While U.S. Treasuries are backed by the government and have very low credit risk, corporate bond rely on a company’s ability to repay its debt, which makes them riskier. To compensate for this additional risk, corporate bonds offer higher yields. However, it is presumed that a company’s bond is generally safer than their stock.

What does it mean if a bond is “callable”?

A callable bond is a bond that the issuer can pay off early – before its scheduled maturity date. This means if interest rates go down or the issuer wants to reduce its debt, they can “call” the bond and repay you sooner than expected. Most callable bonds list a specific call date (the earliest date the issuer can call it), but some have other special features like “make-whole” or “regulatory” calls. For more detailed information on the different call types, please see Bond Corporate Actions.

How can I access the Corporate Bonds learning course?

You can access Webull’s Corporate Bonds course directly through the app or the Webull website. Click here to go to the Corporate Bonds course on the Webull website.

App:

1. Open the Webull app and log in.
2. Tap the Markets tab at the bottom of the screen.
3. Select Bonds from the top menu.
4. Scroll to the bottom of the Bonds page.
5. Tap Learn About Bonds.
6. Under the Courses section, select the Corporate Bonds course to begin learning.