Corporate bonds as a source of funds in the Czech industry

Abstract

The article deals with problems of corporate bonds as a source of funds ot the Czech industrial firms. Corporate bonds represent a long-term external source of funds. First the term corporate bond is explained and then a short characteristic of corporate bonds and finally their advantages and disadvantages are mentioned. Attention is paid to a process of decision which type of corporate bonds to choose, how to realize their ussuing and what are the costs ofissue. The financial structure of the Czech firms only seldom contains the corporate bonds, which has several reasons. These reasons are on the side of demand for capital which is represented by issuers and also on the side of supply of capital created by investors. the reasons for low utilization of the corporate bonds and feasibility of their larger utilization are mentioned at the end of the article.