Enjoy a stream of regular income with investment grade bonds.
Now, you can diversify your investment portfolio and earn regular income with Retail Bond investments. Enjoy direct access to global bond market without the need for an asset management company.
Retail Bonds play a significant role in your wealth accumulation by:
- Offering safety and stability in your investment portfolio by balancing out equity market effects.
- Retaining the ability to provide consistent returns even during times of market volatility.
- Providing an avenue for capital preservation when bonds are held until maturity.
- Presenting potentially higher interest rates when compared to deposits with possible capital appreciation.
|Accessibility||Gain direct access to a wide range of global bonds which include a variety of foreign currency denominations*.|
|Manageability||Take charge by selecting whichever bond issuer you wish to invest with.|
|Creditworthiness||Invest in investment grade bonds offered on the market.|
|Consistent returns||Receive a fixed coupon payout on a quarterly, biannually or yearly basis.|
|Flexibility||Buy and sell at your own discretion.|
*Check with a Personal Banker on the choice of bonds available.
Apply for a Retail Bonds
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The common issuers of bonds include Governments and companies to raise funds for their various activities. This makes them borrowers/debtors.
On the other hand, investors and institutions are known as lenders/creditors as they lend money to the bond issuers by purchasing the bonds in return for interest.
There are several ways to invest in bonds, including purchasing individual bonds or investing in bond unit trust funds.
Most individual bonds are bought and sold in the bond market, although some corporate bonds are also listed on the Exchange. The bond market comprises of securities firms and banks that trade bonds; brokers or agents, who buy and sell bonds on behalf of customers in response to specific requests; and dealers who keep an inventory of bonds to buy and sell.
Bond unit trust funds offer a fixed portfolio of investments in government, municipal, mortgage-backed or corporate bonds, which are professionally selected and remain constant throughout the life of the unit trust.
Bonds and equities/stocks are both investment securities. The major difference between the two is that stockholders have an equity/ownership stake in the company, whilst bondholders have a creditor stake in the company.
There are four key characteristics to consider when choosing a bond. They are:
- the term or tenor of the bond
- the creditworthiness of the bond issuer
- the legal structure of the bond
- the interest rate or coupon payments
The tenor is the legal lifetime of a bond, usually described via a time period from its date of issuance ('ten year') or via its maturity date ('May 2017').
The creditworthiness of a bond issuer determines its capacity to repay its debt and interest rates charges. The poorer the creditworthiness, the higher the coupon/interest rate is likely to be as investors will demand to be rewarded for the higher risk that they are taking on their capital.
The legal structure of a bond determines the priority of an investor's rights to be paid their interest coupon, or to be repaid their nominal amount at maturity, or in the event of company failure or bankruptcy.
The interest rate or coupon is the interest paid by the bond issuer to the bond holder for the use of their money over the term of the bond. They are usually paid on a regular basis, ranging from quarterly, semi-annually, or annually.
For the Citibank Account Terms and Conditions, click here.
- Bonds are not deposits and are not protected by Perbadanan Insurans Deposit Malaysia (PIDM).
- Bonds are obligations only of the issuer. Bonds are not obligations of or guaranteed by Citibank Berhad, Citibank N.A., Citigroup Inc. or any of their affiliates or subsidiaries, except if Citigroup Inc. or any of its affiliates or subsidiaries is the issuer and/or has expressly stated that it is guaranteeing the bond. Bond investments are subject to investment risks, including the possible loss of principal amount invested. Past performance is not a guarantee or indication of future results and bond prices can go up or down.
- Prior to investing in bonds, please read and understand the Bond Fact Sheet, Risk Disclosure Statement and the Terms and Conditions for Retail Bond Investments. Investors investing in bonds denominated in foreign currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal.
- This document does not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution or offer is not authorized or to any person to whom it is unlawful to distribute such a document or make such an offer or solicitation. This document does not take into account your investment objective or financial situation.
- You should obtain advice based on your own circumstances from your own tax, financial, legal and other advisors before making an investment decision, and only make such decisions on the basis of your own investment objectives, risk tolerance, investment experience and resources. Citi assumes that, before making any commitment to invest, you have taken whatever tax, legal or other advice you consider necessary and that you have arranged to account for any tax lawfully due from you on the income or gains arising from any investment product provided by Citi.
- This product is not available to U.S. persons and may not be available in all jurisdictions.