What do interest rate bonds and credit bonds mean respectively?

Interest rate creditors mainly refer to national debt, local government bonds, policy financial bonds and central bank bills. Since the bond interest rate fluctuates with the market interest rate, any significant difference between the actual rate of return and the market rate of return can be avoided by adopting the floating rate bill, so that the issuer's cost and the investor's income are consistent with the market trend.

Credit bonds refer to bonds issued by entities other than the government and agreed to repay cash flow with a certain principal and interest. Specifically, it includes corporate bonds, corporate bonds, short-term financing bonds, medium-term notes, separate convertible bonds, asset-backed securities, subordinated bonds and other varieties.

Extended data:

Investment method:

First, timing is very important for credit bond investment. Generally speaking, when the economy is in the downward phase of the cycle, national debt and high-quality investment-grade credit bonds have great investment value, while credit bonds with lower credit qualifications need to be avoided despite their higher yields;

Second, the issuers of credit bonds have different qualifications. In order to ensure the safety of investment, it is very important to study the issuer. The business status of the enterprise and the background of the issuer's shareholders are the key objects of investigation;

Third, the way to increase the credit of bonds. At present, the credit enhancement methods adopted by domestic credit bonds mainly include equity pledge, accounts receivable pledge, land mortgage and third-party guarantee. The function or effectiveness of credit enhancement method needs to be analyzed in detail.

References:

Baidu Encyclopedia-Credit Debt? Baidu encyclopedia-interest rate debt