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Retail Bonds
Benefits and features
- Capital protection
- Regular interest income
- Potential capital appreciation
- Diversification
What are bonds?
Bonds are debt securities, similar to an I.O.U. When you purchase bonds, you are lending money to a government or corporation, broadly known as issuers. Issuers of bonds may use the money to finance their operations or investments. In return for the loan, the issuer generally pays you income at a specified rate and on specified dates during the life of the bonds (except zero-coupon bonds), and to repay the face value of the bonds when they mature.
Bonds offered by HSBC
At HSBC, we offer a wide range of Singapore dollar bonds and International bonds (ie bonds denominated in a currency other than Singapore dollar) for you to choose from to meet your financial objectives and investment needs.
Singapore dollar bonds
Singapore dollar bonds are debt securities issued usually by the Singapore government, statutory boards, corporations and conglomerates in Singapore dollar. Foreign companies may also issue bonds denominated in Singapore dollar.
International bonds
International bonds are debt securities issued by multi-national corporations and governments from around the world. International bonds are available in a variety of currencies, like US dollar, sterling, and euro.
Why invest in bonds?
Capital protection
Generally, when bonds mature, your capital should be returned to you in full (see Possible risks).
Regular interest income
Bonds may be suitable for you if you prefer to receive regular income on your capital throughout the investment period. Those who are retired or near retirement may find the regularity of income payments useful to help cover living expenses.
Potential capital appreciation
There is potential for you to make capital gains by selling the bonds if they appreciate in market value.
Diversification
Diversification is important because different asset classes respond differently to different market conditions. An investment portfolio that comprises bonds, in addition to other asset types (eg equities), can help lower the overall risk of your portfolio as bonds tend to be less volatile as compared to equities. Therefore, bonds help to protect your portfolio against excessive market volatility.
Act now
- Phone: 1800 216 9008 (Singapore) and (65) 6216 9008 (Overseas).
- Email Us
* Fees are subject to prevailing Goods & Services Tax rate. Fees may change from time to time.
Note: In addition to the handling charges (if applicable), we may also earn a spread between the price we buy/sell the bond from/to you and the price that we sell/buy the bond to/from the issuer or other third party. This spread would be dependent on the daily market movements of the bonds and the timing of our realisation of the profit or loss on our trading position.
This document is provided for information only and is not intended as an offer to buy or sell securities. Opinions and estimates expressed are subject to change without notice and HSBC expressly disclaims any and all liability for representation or warranties, express or implied, contained herein or for omissions. As this document is circulated to all clients, the specific investment objectives, personal situation and particular needs of any specific person have not been taken into consideration. HSBC does not but may from time to time have an interest in the securities and may hold long or short positions for its own account or those of its clients.
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 the bonds bears the credit risk of the issuer and has no recourse to HSBC unless the latter is the issuer itself. The decision to place the investment should be based on your own judgement without relying on any material provided or advice given by the Bank or its representative.
Contact us
Visit our Commercial International Banking Centre
Phone: 1800 216 9008 (Singapore) (65) 6216 9008 (overseas)
8.30 am to 6.00 pm, Monday to Friday
