What Are Bonds?
Bonds are fixed-income instruments through which investors lend money to governments, financial institutions or companies for a defined period. In return, the investor may receive periodic interest payments and repayment of the principal at maturity, subject to the terms and creditworthiness of the issuer. Bonds can play an important role in a diversified investment portfolio by providing regular income, portfolio diversification and greater visibility of investment tenure.
Primary Bond Market
Invest in Bonds at Issuance
The Primary Bond Market is where new bonds are issued by companies, financial institutions or other eligible entities to raise funds.
Investors can participate in selected bond issuances and invest at the time the securities are initially offered, subject to availability and applicable terms.
Key features:
- Access to new bond issuances
- Defined tenure and maturity
- Pre-determined coupon/interest structure, where applicable
- Potential for regular interest income
- Opportunity to diversify beyond traditional investments
Who may consider Primary Market Bonds?
Investors looking for fixed-income opportunities and who are comfortable holding investments for a specified tenure may consider suitable primary bond offerings after evaluating the issuer, credit quality, interest rate, maturity and associated risks.
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Secondary Bond Market
Explore Bonds Available in the Secondary Market
The Secondary Bond Market allows investors to buy and sell existing bonds after their original issuance.
This provides access to a wider range of bonds across different issuers, maturities, coupon structures and credit profiles. Depending on market conditions and availability, investors may also find opportunities that match specific investment requirements.
Key features:
- Access to existing bonds
- Wider choice across issuers and maturities
- Potential opportunities based on prevailing market yields
- Flexibility to select investments according to tenure and investment objectives
- Opportunity to diversify an existing portfolio
Important: Prices and yields in the secondary market can change based on interest rates, credit conditions, liquidity and market demand. The price at which a bond is purchased or sold may therefore differ from its face value.
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