Aspects to note before buying corporate bonds!

While purchasing corporate bonds on the online bond platforms, certain aspects need to be kept in mind; Liquidity – If you want cash in short-term and want to book profits, you should know whether the platform would list your bond for someone to pick up when you want to sell. Price - The other aspect is the price at which the platform may be willing to pick it up. It may so happen that the bond platform offers to buy the bond from you at a lower price. Credit quality & Yield - Yield is the annualized effective return you would get provided you hold the bond till maturity. The idea is, the higher the yield, the better. Whereas the credit quality of corporate bonds is usually gauged through credit rating, where AAA is the best, followed by AA, and so on.