A bond can be purchased by an investor who is, in essence, lending money to the company 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 Bonds

Safer 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.

Trade Now with UTRADE Bonds

How To Get Started

Open a UTRADE account today and start enjoying the premier platform you deserve. Should you have any enquiries, please call Bond Enquiry Hotline at (852) 2826 4819.

Risk Disclosure for Bonds

Investment in Bonds / CDs involve substantial risks including market risk, liquidity risk, and the risk that the issuer will be unable to satisfy its obligations under the Bonds / CDs. Do not invest in the bonds / CDs unless you fully understand and are willing to assume the risks associated with it. You should consider carefully whether bonds / CDs are suitable for you in light of your experience, objectives, financial position and other relevant circumstances.