Fixed Income

FIPIC7

BONDS

A bond is an IOU between an investor and the bond issuer. The investor lends the bond issuer a set sum of money in exchange for a promise to pay back the lump sum at a pre-agreed date in the future and regular interest payments throughout the term of the loan.

 

Bond issuers can be companies or governments. Generally the less financially stable the bond issuer the greater the interest payment – for example the US government would pay a smaller rate of interest than a small company in a developing economy.

If you buy the bond at the date of the issue and hold it for the duration of the loan agreement the interest rate is called a coupon.

Much like shares, bonds can be traded between investors.
The bond establishment remains an equivalent, but the bond is transferred to a new owner who is then paid both the interest and, at the end of the term, the lump sum.

The price of a bond is set by demand. While the coupon payment could be a set quantity of money, as a result of the worth of the bond fluctuates within the open market, thus will the yield will be express as a percentage.

We offer a variety of Fixed income instruments, such as bonds on the various Exchanges and OTC: USD Corporative Bonds, UK Corporate Bonds, EMEA bonds, Russian Bonds, MOEX Bonds and more.

Risk Warning: The investment value can both increase and decrease, and the investors may lose all their invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary.

 

FUNDS

A fund is an investment vehicle that allows a large number of people to pool their money together to invest in a range of different securities such as stocks, bonds, property or commodities. Funds have different objectives such as to deliver a regular income or capital growth for the investor. Funds are grouped into categories determined by this aim and by where in the world the underlying stocks or bonds are from.

A fund can be actively managed, where an appointed individual picks which securities to invest in from a larger pool, assisted by a research team. Or a fund can be passively managed, where the investor can gain exposure to a particular index or commodity, providing that investor with the same returns as the underlying market.

Funds are suitable for investors who do not have the time or expertise to construct and monitor a portfolio themselves. They require a smaller investment than picking individual stocks or bonds allowing the investor to gain access to a far greater number and variety of securities.

We offer a variety of Funds: under the management of well-known Advisors, Funds exchanges, such as KRG Capital Management, Apis Capital Advisors, Meridien AFM, Notz Stucki Europe.

DISCLAIMER

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person’s sole basis for making an investment decision. Please contact your financial professional before making an investment decision.