What is Bonds?
A bond can be purchased by an investor who, in essence, is lending money to the corporation or organisation that issues the bond. In return, investors will receive fixed coupon payments from the bond issuer.
Bond issuers, generally corporations or governments, are obliged to pay investors interest on a fixed basis. Payment can be made quarterly, bi-annually or annually. At the maturity date, the bond issuer is required to repay the principal to the investor, in accordance with the terms spelled out in the offer document.
Benefits of BondsSafer Than Shares
It is generally safer to invest in bonds than shares. If a company goes bankrupt, bondholders, as creditors, are paid ahead of equity owners. This means they stand a better chance of recovering part of their investments.Security and Predictability
Bond issuers are obliged to pay out coupons, giving investors stable returns. Bond issuers guarantee that investors will get their money back at the end of the bond tenor.Relatively Attractive Returns
As an asset, bonds typically pay higher interest rates than bank deposits. They provide a better investment vehicle for investors who are dissatisfied with low deposit rates but may not be willing to take on more risks in the stock market.Local and Foreign Bonds on Offer
UOB Kay Hian offers a broad selection of local and foreign bonds, including government bonds and corporate bonds. You can build a diversified portfolio that has a lower risk profile than an equity portfolio, all while enjoying stable returns.Competitive Pricing
As one of the biggest brokers in Asia, we enjoy direct access to bonds issued in key markets. This allows us to seek the best prices for you to seize all market opportunities.Specialist Support
Our dedicated specialists are always on hand to provide the support and information that you need when making key investment decisions or executing orders.
How To Get Started
For existing UOB Kay Hian client, contact your Dealer Representative / Wealth Advisor to find out more.
For new client, you may fill up the Online Account Opening form for Unit Trust at this link Learn more about bonds
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