Investment Choices

Fixed Income Securities

Receive regular interest payouts over the period of the loan on top of the principal upon maturity.

fixed income securities

Benefits

  • Steady, fixed flow of interest payments over the tenor of the security.
  • Possibility of higher yields compared to equity dividends.
  • Less volatile compared to equities.
  • Opportunity to diversify your higher risk assets.

For more information

  • Contact your Trading Representative at DBS Vickers Securities; or
  • Call our Investment Service Centre Hotline on +65 6327 2288 (SG) or +852 2902 3888 (HK).

Types of Fixed Income

 

By investing in these bonds, you can generate a stable and secure stream of investment income.

Receive principal value of your bond upon its maturity or when the bond is called by the issuer. These bonds come with varying credit ratings, features and maturities denominated in all major currencies as well as a variety of Asian currencies.

Investment grade bonds have a minimum credit rating of Baa3 by Moody’s and BBB- by Standard & Poor’s. These credit-rating agencies assess the credit risk of the issuer of the bonds and assign them a credit rating based on information available at the time. Credit risk rating represents the agencies’ opinion on the possibility that the bond issuer may fail to pay what is owed.

Benefits

  • Steady flow of interest income through the tenor of the bond.
  • Receive the principal value of the bond upon maturity or when the bond is called by the issuer.
  • Generally less volatile than speculative grade bonds.

 

Receive potential higher yields by investing in these speculative grade bonds which typically carry a higher risk of default or other adverse credit events as compared to investment grade bonds.

Speculative Grade bonds are those rated BB+ and below by Standard & Poor's (S&P) and Ba1 and below by Moody's. These credit-rating agencies assess the credit risk of the issuer of the bonds, and assign them a credit rating based on information available at the time. Credit risk rating represents the agencies' opinion on the possibility that the bond issuer may fail to pay what is owed.

These products are only recommended for investors with an appropriate risk appetite as they carry significant risk.

Benefits

  • Steady flow of interest income through the tenor of the bond.
  • Potential for higher capital appreciation.

 

These are SGX-listed debt securities offered to retail investors. These bonds are traded on the SGX Main-board similar to how stocks are traded.

 

Risks: This product introduction does not form part of any offer or recommendation, or have any regard to the investment objectives, financial situation or needs of any specific person. Before committing to an investment, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and read the relevant product offer documents, including the risk disclosures, which can be obtained from DBS Vickers. If you do not wish to seek financial advice, please consider carefully whether the product is suitable for you.

Investing in fixed income securities involves risks, including but not limited to economic, market, liquidity, interest rate, and default risks. To manage the risks, investors should keep abreast of economic and corporate developments and seek to understand the workings of such instrument and financial markets in general. To find out more, please contact our Investment Specialists.