Description

A bond is a fixed income debt instrument, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (coupon) to the holder and/or to repay the principal at a later date. It is a formal contract to repay borrowed money with interest at fixed intervals.

What kind of returns will I be receiving?

Bonds are a great alternative to other investments such as equities, mutual funds and fixed deposits and offer a good return as compared to its risk. Bonds are also much more secure than equities as they are governed by stricter terms and conditions.

How safe are bonds?

In terms of default risk (the risk that the bond issuer is unable to repay bond holders at the maturity date), bonds are usually rated by reputable rating agencies such as Standard and Poor’s, Moody’s, Fitch and CariCRIS (a Caribbean credit rating agency). The ratings given by these agencies are an indication of the issuer’s probability of default and ability to make its obligated payments. Investors therefore use ratings as a gauge of how safe a bond is. Generally, the higher the rating, the less likely the issuer will default.

Benefits

Bond
Specifics

The following documentation are required to open an account:
*Additional documents may be requested if necessary

Frequently Asked
Questions

It is an instrument that the client/investor buys into to earn a fixed rate of return/interest over a medium to long term (anywhere up to twenty years).  The return is usually higher than regular deposit accounts or fixed income funds.

The Interest (known as Coupon Interest) will be paid to the investor, usually twice a year. 

A bond may also be sold before the maturity date, and depending on the prevailing investor market for the particular bond, the seller may either sell at a price higher or lower than the face value of what the bond was purchased for.

A credit rating, which is usually assigned by credit ratings agencies, such as Standard and Poor’s, or Moody’s, indicate how likely the issuer of the bond will be to be able to meet their obligated payments, whether the yearly interest, or the principal upon maturity.

Yes, Repos may be held jointly.

Downloadable
Resources

Bond Bulletin
Disclaimer

Important information concerning the investment goals, risks, charges and expenses is contained in the prospectus, which is available at any Bourse Securities office or at www.bourseinvestment.com. Investors should carefully consider this information before investing. Performance is subject to variation and is likely to change over time. Past performance should not be treated as an indicator of future performance.

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