Bonds
A bond is a form of the fixed income investment. A bond allows its holder to receive fixed payments (coupons) on the predetermined dates (for example, quarterly), while the issuer must pay the par value of the bond upon the expiration.
Bonds are divided into two categories depending on the issuer: government bonds and corporate bonds. By issuing bonds, governments and companies seek to increase their liquidity through the investors in order to fund their activities. Until now, only institutional investors have had access to the bond market.
For which investors bonds are the best investment tools:
- Conservative investors who are not satisfied with the low return on their bank savings.
- Pensioners who want to receive passive income every year.
- Any investor wishing to diversify his portfolio.
Advantages of the bond market
- Low risk: the only significant risk that the bond holder takes on is the possibility of reducing (“cutting”) the par value of the bond (for example, the cutting of Greek government bonds in 2013) or extending the maturity (for example, the maturity of Dubai government bonds has been rescheduled from 2010 to 2015).
- Moderate return: the investment return offered by the bonds is called the golden mean between low bank savings and high stock returns.
- Predictability: unlike stocks, bonds offer specific returns on predetermined dates, making it easier for the investors to plan for the future.
- Government bonds and blue-chip bonds have a very high level of liquidity. This means that you can always find active buyers for these bonds at the market prices.
- Portfolio diversification: bonds are a low risk investment recommended for any portfolio.
- Foreign exchange risk hedging: the investors can buy bonds in foreign currencies (e.g., in US dollars).
Services provided by Amazon Corporate & Immigration Services:
- Placement and sale of the bonds at the primary market. Our Department charged with the sale of bonds is registered with the Cyprus Securities and Exchange Commission (CySEC).
- Consulting services.
We have implemented the PMP procedure established by the CFA Institute to identify the bonds that fit the specific needs and situations of each investor. - Fundamental and technical analysis of the bond market and the customer’s investment portfolio.