All you need to know about bond investing

What are bonds?

Bonds are often likened to sophisticated IOUs. They are a type of fixed-income investment, where an investor lends the issuer money for a period in exchange for interest payments and the return of the principal amount upon maturity.

If you’re unfamiliar with bonds, you may read our introductory explainer here.

 Bond types 

There are many bond types offered by different issuers. Know all about them here:

• What are sovereign bonds and how do they work?
• What are government bonds and how do they work?  
• What are retail treasury bonds and why should you invest in them?
• What are corporate bonds and are they a good investment?
• What are sustainability bonds? 

Bond redemption 

Some bonds may feature options to end the investment earlier than the scheduled maturity date. Learn about them from our explainers below:

• Introduction to bond redemption
  • Understanding callable bonds
  • Understanding callable step-up bonds
  • Understanding put options in bonds  
  • Understanding make-whole calls
  • Understanding clean-up call options
  • Understanding tax change calls
  • Understanding change of control puts 

Diving deeper 

While bonds are generally considered relatively safer investment, they are not completely risk-free. Their value can be affected by factors such as inflation and policy interest rates. Learn more from the stories below:

• What to consider when investing in foreign sovereign bonds
• What to consider when investing in corporate bonds
• Decoding bond prices: Understanding risk-free rates and credit spreads
• Bonds 101: Why price and yield move in opposite directions
• What is an inverted yield curve and why should you care about it?
• The impact of interest rates on bond prices

Want to know more?
 

Bookmark Wealth Insights for more financial market updates. Log-in Wealth Insights and explore the bonds page for expert insights, strategies, and top picks. You may also access Wealth Manager through the Metrobank Online site or the Metrobank App to view more bond information.