What are bonds?
Bonds refer to debt securities issued by governments, government-related entities or corporations. The issuer of the Bonds generally pays you income at a specified rate on specific dates during the term of the bonds and, subject to risks set out in the relevant Bond Prospectus, promises to repay the face value of the bonds on maturity.
Why invest in bonds?
Fixed income products such as bonds are important if you are aiming for a balanced portfolio of investments. Due to their relatively lower volatility compared to equities, bonds can add stability and diversify your investment portfolio. They may also provide a regular stream of fixed income returns and potentially grow your capital in the long term.
Enjoy a regular income stream
Bonds may be suitable for you should you prefer to receive stable income on your capital throughout the investment period.
Diversify your investment risk
Diversification is important because different asset classes respond differently to different market conditions. The inclusion of bonds may lower the overall risk of a portfolio, as they tend to have a lower volatility to certain asset classes, such as equities.
Reap potential long-term gain
Bonds offer the potential to make capital gain by selling them if they appreciate in market value.
Apply in branch
Alternatively, you can visit one of our branches, where our staff will be glad to give you further information.
Things you should know
Information quoted is from publicly available sources or proprietary data and subject to change without notice. This information is neither an offer to sell, purchase or subscribe for any investment nor a solicitation of such an offer. HSBC accepts no liability for any loss or damage arising out of the use of all or part of this material. This information is general and does not take into account a person's individual circumstances, objectives or needs. The price of bonds can and does fluctuate and any individual bond may experience upward or downward movements. The secondary market for bonds may not provide significant liquidity or may trade at prices based on prevailing market conditions. Past performance is not a reliable indicator of future performance. The holder of the fixed income security bears the credit risk of the issuer and has no recourse to HSBC unless the latter is the issuer itself. The decision to place the investment should be based on your own judgment without relying on any material provided or advice given by the Bank or its representative. You should consider these matters and consult your financial advisor prior to making any investment decisions.