Prominenceclienttrust

 Commercial bonds are fixed-income products issued by states and companies. If you are considering investing your money in bonds, you must first know what they are, how they work, and what risks they have. On this page, we resolve the main doubts about this investment instrument and  clarify the difference between bonds, bills, and obligations What are the bonds? Bonds are fixed-income instruments issued by a Government or by an offshore bank to finance itself. These products are, in short, a debt. Its operation is simple: the issuer of the bond undertakes to return the money slowly to the bondholder on a previously agreed date together with some interest, which can be paid regularly utilizing a coupon or discounting the initial capital. Bond issues allow public and private institutions to obtain large sums of money that would be difficult to collect if they applied for a loan from a single lender. With this system, they can divide the loan amount they need into many parts (the bonds)

 In this article, we expand on the concept of financial intermediation and its types. Discover why it is so important to know the concept of investing. What is financial intermediation? When we talk about financial intermediaries, we refer to a process in which a group of institutions receives money from people or companies. After that, they must deliver it in the form of loans to those who seek economic resources to be able to carry out their activities in the acquisition of goods or services. Thanks to a financial intermediary, the savings of a group of people can become an indispensable resource for others to invest in. It is a way of generating employment and supporting economic progress in society. This system is possible thanks to the trust that exists among depositors and economic stability. Direct and indirect financial intermediation: Direct financial intermediation occurs when a surplus agent takes responsibility directly for the resources that it grants to the deficit agent