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Tel: 0203 695 9900 Web: www.ukassetcompany.co.uk Email: [email protected]
Bonds are essentially loans to a company and are a relatively simple investment vehicle to get your head around and start using to your advantage. It tends to be that the higher the rate the bond / company pays the higher the risk, which is why we tend to only promote bonds where there is the additional comfort of asset backing of some description.
A bond is essentially a loan given to a business or the government. As the investor, you are the creditor, loaning your money for a defined period of time for an interest rate.
Interest rates can be both variable where they fluctuate reflecting market conditions or fixed, giving you certainty.
Bonds are issued when companies or other organisations need to raise additional capital, this can be for a variety of reasons, for instance, to refinance existing debts or to fund a new project.
During the bond term from a bond from one of our Corporate Clients you can expect to receive regular interest payments. When the maturity date is reached, the loaned funds (the bond) are returned. If you were to purchase a bond for say £10,000 with a 15% interest rate, you would receive £1,500 annually over the bond term. Typically sold in small denominations, such as £5,000 or £10,000, bonds give you the flexibility to invest as much or as little as you want in a venture.
Your bond investment
£10,000
Your interest rate
per annum
You receive
annually over bond term
Bonds are essentially loans to a company and are a relatively simple investment vehicle to get your head around and start using to your advantage. It tends to be that the higher the rate the bond / company pays the higher the risk, which is why we tend to only promote bonds where there is the additional comfort of asset backing of some description.
Bonds are often chosen for being a stable, reliable income. There’s a growing scepticism towards the bull stock markets and, as a defensive asset, bonds are an ideal option for those seeking a predictable form of income.