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Government Bonds, No Risk!?

Government Bonds Have No Risk! While it is common to refer to government bonds as “risk-free” securities, this may not be completely accurate. While it is true that credit risk is not a concern for most government bonds, investors who invest in a government bond are still exposed to interest rate risk – should yields […]

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Bonds Lose Money When Interest Rates Rise

Bonds Lose Money When Interest Rates Rise It is common knowledge that bond prices and interest rates are negatively correlated – that is, when one rises, the other falls. However, the relationship is not always that straightforward. Bond yields are a reflection of both the interest rate environment, as well as the credit risk of […]

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Higher Bond Yield Always Better!?

Higher Bond Yield Always Better? All things equal, a higher yield on a bond should be preferable to a lower yield. However, all things are rarely equal! A higher yield on a bond is usually offered to compensate investors for higher risk undertaken. For example, a lower quality company will have to offer investors a […]

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Bonds Always Make Money

Bonds Always Make Money While bonds are structured to make money for investors, there are two key instances where investors may lose money when investing in a bond. First, the fixed nature of coupon payments and principal repayment are only valid if the bond is held to maturity. Should an investor sell the bond in […]

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Terms of Bond

Terms of Bond : Principal: The Face Value of Bond. It is the amount paid back to the bond holder by the issuer on the maturity day. Coupon Rate: This is the annual rate issuer paid to the bond holder, e.g. annually, semi-annually, quarterly.Maturity Date: This is the date issuer paid back the principal to […]

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Economic impact on bonds

How the economy impact bonds? Investment grade bonds are usually favoured when economic conditions are deteriorating. However, under buoyant conditions, demand for high yield bonds increases. Amid stronger global growth, higher yielding bonds have generally outperformed lower yielding ones. Interest rates and their effect on a bond’s rating Duration, which is often measured in years, […]

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The classification of bonds

The classification of bonds The good news for investors is that it is relatively straightforward to generally assess the risk profile of a bond, with much of the detailed research carried out by external credit rating agencies. The three most significant firms in the market are Standard & Poor’s (S&P), Moody’s and Fitch, who screen […]

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Common Type of Bonds

Type of Bonds   Fixed Rate Bonds: These are bonds with the interest rate fixed throughout the entire investment period. The interest rate does not change with the market interest rate. Callable Bonds: The issuer has the right to redeem the bond at the predetermined redemption price prior to the maturity date. For example, the […]

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Highlight: Latest Credit of Chinese Real Estate Issuers

Highlights: the deleveraging performance in the Chinese real estate sector is remarkable. More than 90% of the developers have reached the “yellow light” or “green light” level under the three red lines guidelines. The passing rate of net gearing ratio and cash to short-term debt ratio both reach positively at 90%, while the passing rate […]

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How to Make Money in Bonds?

Two ways to make money from bond Bond Yield Bond Investors receive a coupon if bond held to maturity. The coupon corresponds to a level of yield (or interest) on the bond principal (or face value). These coupons makes up the major contribution to an investor’s return. The unvarying nature of coupons from bonds is […]

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BOND FUNDS vs. DIRECT BONDS

BOND FUNDS vs DIRECT BONDS Pros & Cons Investing bond fund help risk diversification and usually perpetual without maturity date Investing direct bond mostly have a fixed maturity date & coupon payments, so it offers a certainty with a rate of return, assuming the bond is held to maturity. Important to understand their differences and […]

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Time to invest Chinese real estate bonds?

Update on RMB Bonds: How and when to invest Chinese real estate high yield RMB bonds?    Summary: Given the default case by China Wealth land , the overall yield of mainland real estate high-yield bonds has recently increased. Other macro economic factors, such as Chongqing Energy’s failure to repay debt, rising concern about tight […]

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Common Robo-Advisor Features

COMMON ROBO-ADVISOR FEATURES: Portfolio management Allocate funds to risky & risk-free securities in line with investors’ preferences Monitor economic conditions Re-balance portfolio by adjusting the weights of risky & risk-free securities. Automated Tax-loss harvesting Selling securities at loss for saving on capital gains tax, avoiding taxes on that income. In parallel, investing in similar securities, […]

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Bond Robo-Advisor vs Financial Advisor?

Good about Robo Advisors  Easy entry into the investment world  Lower fees & lower learning curve You hold the pace, in control More time to care other matters  Independent, no conflict of interests or gamble away your money No plot to charge high fee Good About Human Financial Advisor Real Advisors mediates money issues among […]

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Robo-advisor – Benefits

Robo-Advisor – Benefits Impartial Advice Low fees 24/7 automation No troublesome procedure! No capital limit! Absolute Free flow of cash For enquires, please call (852) 3892-5812 Or email us : cs@bondfundtrust.com #roboadvisor #bond #chinabond #chinesehighyieldbond

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