Bonds are debt instruments that are relatively safe as an alternative to conventional assets such as cash and equities. It helps to diversify portfolios and reduces the portfolio volatility.
You can consider investing in bonds if you are looking to:
- Diversify your portfolio
- Obtain regular income
- Benefit from potential capital gain in bond prices
You may choose to invest in bonds through any of the following:
For more information on bonds, especially the listing of corporate and government bonds that UOB distributes, please speak to your Privilege Banking Relationship Manager or call the Privilege Banking hotline at 1800 355 1118.
The bond issuer owes a debt to the holders of the bond. The traditional bond issuer is obliged to pay periodic interests and principal upon maturity to the holder of the bond. You should note that you are taking the credit risk of the issuer. In the event of the issuer's insolvency, you will be an unsecured creditor of the issuer. In the case of government bonds, you are also taking on sovereign risk.