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Bonds

Lending, with terms written down

A bond is a loan to a government or company that pays interest on a schedule and repays principal at maturity. The difference between issuers is credit quality.

Two Categories

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Government Bonds

Sovereign and state-issued instruments, generally used for stability and predictable income.

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Corporate Bonds

Company-issued debt offering higher coupons in exchange for credit risk that must be assessed.

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Fundamentals

The five things that define a bond

Coupon

The interest rate paid on the face value, usually at fixed intervals.

Maturity

The date the principal is scheduled to be repaid to the holder.

Yield

The return based on the price you pay, which can differ from the coupon.

Credit Quality

The issuer's assessed ability to meet interest and principal obligations.

Liquidity

How readily the bond can be sold before maturity, and at what spread.

Interest-Rate Risk

Bond prices generally fall when rates rise, and rise when rates fall.

Explore Bond Investment Opportunities

Speak with our advisory team to understand available opportunities and suitability.

Important: Bond investments are subject to credit, interest-rate and liquidity risk. Yields and availability are indicative and subject to change, and no bond is presented here as risk-free. Please read all offer documents before investing.

Next Step

Speak with an advisor before your next investment decision.

A complimentary consultation to understand your objectives, horizon and risk profile — no obligation, no pressure.