Domestic government bonds are considered as risk free inside the country. Even the bonds issued by the foreign governments are considered to have very less risk.
Does not require too much fulfill too much condition to issue debt securities like Initial Public Offering or Follow on public offering.
The privately held companies can raise money through corporate bond very easily.
Government’s easiest way to raise money from the market to fund the fiscal deficit.
Debt subscribers and bond buyers get the maximum priority over the assets of the company in times of liquidation. This priority helps the investors to invest more in the corporate bonds of the company of good fundamentals.
Raising money through debt securities or bonds is cheap compared to any other source of money like equity, loan or preference shares and it carries much interest rate. That’s why companies use this as cheap source of money.
For most of the cases, the bonds or debts issued by the companies are backed by some assets which also increase investor’s confidence to invest in corporate bonds or debts.
Debt instruments are highly related to interest rate changes as the yield rate move with interest rate, which helps investors to predict future interest rate changes.