Fixed Income

Bond-Linked Investments

Bond-linked investments are structured products which are linked to an underlying bond.

You can earn an enhanced yield by taking a view that the underlying bond will not fall below a certain price. Bond-linked notes are issued by financial institutions and investors are exposed to the issuer’s credit risk.

These products are not suitable for all types of investors as they carry significant risks and are only recommended for experienced investors.

Benefits

  • The note offers attractive yields in a stagnant or bullish market
  • Investors waiting to buy a bond at a lower price can also benefit from an enhanced yield while waiting for the bond price to drop 

Risks

  • Unwinding of Bond-Linked Investment prior to expiry may result in losses  

For more information

  • Contact your Wealth Manager or visit any of our branches.

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