Bond investment diversifies the risk of your portfolio

What is Bond?

Bond is a debt security. The issuer borrows money from bond holders and is obliged to pay interest and to repay the principal at maturity. It is a formal contract to repay borrowed money with interest at fixed interval.

Bond Investment

• A medium to long term investment tool with stable interest return
  Bonds diversify the risk of your investment portfolio. The minimum investment amount of Bonds can be as low as HK$10,000 or equivalent (depending on individual bonds), Investors can enjoy a lower investment cost as they only need to pay safe custody charge but no transaction or coupon collection fee involved.
• Wide range of choices for you to choose from
  A broad array of bonds with various tenors, coupon rates, credit ratings and terms are available for you to choose from.
• Professional services
  At CMB Wing Lung Bank, we provide professional services for helping you to select the appropriate type of bonds to invest in accordance with your investment objective and risk appetite.

Types of Bond

• By Issuers
  • Corporate Bond
    Issued by listed companies or their subsidiaries, such as CK Hutchison Holdings and China Light & Power.
  • Government Bond
    Issued by a government such as HKSAR Government and PRC Government.
  • Quasi-government Bond
    Issued by corporations wholly-owned by government or corporations with government as the major shareholders, such as Hong Kong Mortgage Corporation and the Airport Authority.
• By Coupon Rates
  • Fixed Rate Bond
    A bond that pays a fixed coupon, which will remain unchanged over the life of the bond.
  • Floating Rate Bond
    A bond that pays variable coupon which linked to a market reference rate.
  • Zero-coupon Bond
    A bond that pays no coupons but sold at a greater discount and will be redeemed at par at maturity.

Risk Disclosure Statement:

Bond investment involves credit risk of issuers. If the issuer defaults, the bond holder may not be able to receive the principal and interest. There may be exchange rate risk if investing bond with non local currency. At times there may not be any counterparty quoting prices or providing liquidity for the bond. The above information is for reference only and does not constitute and should not be regarded as any recommendation, offer or solicitation to purchase or sell any investment products. Investment involves risks and the price of investment products may fluctuate or even become worthless. Past record is not an indicator of future performance. Losses may be incurred rather than making a profit as a result of investment. You should carefully and independently consider whether the investment products are suitable for you in light of your investment experience, objectives, financial position and risk profile. Independent professional advice should be obtained if necessary. Please read the relevant terms and conditions together with the risk disclosure statements before making any investment decisions.

This document has not been reviewed by the Securities and Futures Commission of Hong Kong.

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