Investing in Bonds: A brief introduction
Bonds are debt securities issued by governments, corporations or other entities. When you purchase a bond, you are agreeing to lending money to the bond issuer. The bond issuer is obligated to pay you a specified interest rate (coupon) during the life of the bond and return the principal to you upon maturity, which ranges from 1 to 30 years. You may hold the bond until a pre-specified maturity date or sell it during the life of the bond.
3 reasons of investing in bonds:
Bond investing in Taifook Securities
- Enjoy higher yield than common bank deposits.
- Enjoy fixed income despite market fluctuations.
- Enjoy capital gain when the bond price increases.
Taifook Securities offers diversified bond investment services with the following unique features:
We offer various types of bonds in both primary and secondary markets:
- Large variety of fixed income products
- Commission as low as 0.3% of its faced value
- Minimum investment of USD 100,000 or equivalent.
- Quick and reliable quote service via our one-stop bond investment hotline 2801-2450, professional brokers and extensive branch network.
- Timely delivery of e-statement with your latest transaction details.
For enquiries, please contact our customer service hotline at (852)3583 3388.
- Fixed rate bonds are issued with a specified coupon rate that remains constant throughout the life of the bond.
- Extendible bonds are bonds with a specific maturity date that also offers the issuer an option of extending the maturity date by certain number of years.
- Floating rate notes are linked to inter-bank rates which are always lower than the coupons.
- Zero-coupon bonds are issued with no periodic interest at all, but the bonds are issued at a discount of its par value.
Investment involves risks. The price of bonds can and does fluctuate and any individual bond may experience upward or downward movements, and may even become valueless. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling bonds. The holder of bonds bears the credit risk of the issuer and has no recourse to Taifook Securities Group Limited and its subsidiaries.