Bonds trading service

Bonds are usually a core element in many investment portfolios and wealth management plans. In times of economic uncertainties, bonds with high credit ratings are useful for balancing the risks of other high volatility assets in the portfolios, resulting in more stable performance.

Advantages of bonds

  • Long term income from the dividends and bonuses of stocks are difficult to forecast precisely. On the other hand, the coupon rate of a bond is usually fixed and thus its coupon payments are predictable.
  • A multi-asset class paradigm including the allocation of both equities and bonds is more adept at securing reasonable returns under different market conditions. The risk-returns ratio of such a strategy is more optimized than those focusing purely on stocks.
  • Those investment-grade bonds with higher credit ratings usually have lower total risks and price volatilities than many stocks.
  • Medium to long-term bonds can usually pay a higher return than term deposits.