Module III· DCM — Investment Grade & Senior DebtBasic
Question
What is the difference between a corporate bond and a bank loan?
Answer
A corporate bond is a tradable debt security placed with investors, usually with fixed coupon and standardized terms. A bank loan is provided by banks or lenders, often with amortization, floating rates, maintenance covenants, and closer lender relationship. Bonds offer broad market access; loans can offer flexibility, relationship support, and private negotiation.