Types of bonds investors can invest in
In simple words, a bond is a loan from an investor to a borrower. The said borrower could be either a company or the government itself. The investment amount could be used as capital to fund their operations while the investor receives an interest for their investment. Bonds have a maturity date where the principal amount is repaid along with the pre-defined interest rate. These bonds are one of the three main asset classes along with cash and stocks. investor Two main types of bonds in Singapore In Singapore, bonds are traded in two ways: Wholesale Bonds and Retail Bonds. Wholesale bonds trade in a minimum denomination of S$250,000 and are traded over-the-counter. This makes up the majority of the total SGD denominated corporate bonds in Singapore. Whereas, retail bonds on the other hand, trade in lot sizes of S$1,000 and are traded on the stock exchange market. Types of bonds investors can invest in ● Treasury Bonds Treasury bonds are marketable debt securities issued by