COMPANY FINANCING BY CORPORATE BONDS

Abstract

The corporate bond market contributes to the development of the financial market, its infrastructure, and affects economic growth. In developed countries, corporate bond issuance is a very common way of borrowing by the corporate sector. In developing countries, this method of borrowing is used "shyly" because companies most often turn to banks for help. In addition, the inflow of FDI in these countries contributes to meeting the financial needs of the corporate sector, thus reducing the need for bond issues. The paper compares borrowing by issuing corporate bonds and bank loans, explains the forms of issue of these securities, rating bonds, the secondary market of corporate bonds and briefly presents the picture of the corporate bonds market of Republic of Serbia.