Bond Investor

Bond Investor

A person or company who invests significantly in municipal or corporate bonds. The bonds represent debt that the bond issuer owes to the bond investors. Thus, a bond investor usually has the right to receive principal and interest on this debt, though some derivatives separate the two. Investors buy bonds because they usually have less risk than other securities, and, in the event of the bankruptcy of the issuer, bonds have priority over stock in the liquidation of assets.