The connection and difference between bonds and daily capital lending

The similarities between bonds and daily capital lending are obvious. Bonds and daily capital lending are both creditor-debtor relationships. But the specific performance of this creditor-debtor relationship is not the same:

1. Bond is a socialized and open financing method.

Issuing bonds is to divide the total amount of funds to be raised into several par value units and raise funds from all walks of life at the same time and under the same conditions, that is, there is only one debtor of bonds, but there are thousands of creditors. The relationship between creditor's rights and debts embodied in daily capital lending is relatively simple, only the relationship between a single debtor and a single creditor or several creditors.

2. It is inevitable that daily capital borrowing often depends on the credit of individuals or companies. However, bond issuance is strictly controlled. Generally, only issuers with good credit can issue bonds, and repayment is guaranteed. So it is relatively safe.

3. Bond is a market-oriented financing tool.

Bonds are liquid, that is, they can be publicly transferred or traded in the market. After the bonds are sold in the market, the creditors will change accordingly. The borrower can only regard the bondholder as a lender and pay interest and principal to the bondholder.