A bond is basically an IOU. Government and Corporations issue bonds to gain money, in exchange to promise to pay interest to the purchasers of the bonds. This is a safer method to save and grow your money, then buying stocks. or mutual funds. Bonds will pay a certain amount of interest that's predetermined. This ensures that the bond value will not decrease in value ,like a stock will, if the market is soft, or the company is not doing so well.
Government bonds are sold to investors to help in the cost of running the government. Corporate bonds are sold to gain funds to grow the company, or to pay off debt. Both types agree to pay a certain interest payment to the purchaser.
Sometimes A corporation needs to expand, operations or is looking at a possible new business venture, but need capital to accomplish this action. In some cases the company turns to the shareholders for help. One way is to sell bonds on the corporate bond market.
A company decides how much money is needed , and they issue a bond in that amount. Investors who buy corporate bonds are essentially lending money to the company. In turn the investors will receive interest payments on their loan per the predetermined bond agreement.
Issues happen in life, and sometimes changes need to be made. Situations change, and more funds are needed.. Corporations turn to the investors for help, and in turn offer bonds and predetermined interest on for their investment. New bond issues are common, it a way to raise money for the company. Sometimes they issue mortgage bonds where their investments are even more secured by real estate.
The US Treasury may also be in need of more funds, and offer new bonds , similar to corporate bonds,. But essentially for the same reasons. Other municipalities may need to raise funds for new construction or repairs, and selling bonds is an option over raising taxes.
Investors can go online and find lists of new bond issues, either corporate, or government issued. Explanations and information regarding the bond is there, and is also available through any financial instititution that buys and sell bonds. New bond issues happen for many reasons, and come with risks just like any other investment.