PIMCO

A bond is a fixed income investment representing a loan made by an investor to a borrower. Borrowers include governments, companies, and other entities issuing bonds to raise money to fund their operations.

Governments and corporations issue bonds when they need to raise money. In return for buying the bonds, the investor – or bondholder – receives periodic interest payments known as coupons.

For commercial real estate (CRE) borrowers and lenders, central banks have been a persistent source of frustration in recent years. Aiming to rein in stubborn inflation, the Federal Reserve and most of its peers have maintained elevated interest rates longer than anticipated