Fixed Income Securities
- Rely on our expertise, vast range of products and strong market insights to help you fulfill your investment goals
- Choose from a selection of Bonds and Structured Notes
Bonds are debt instruments issued by governments and corporations, and can be denominated in Singapore Dollar or any foreign currency.
Benefits of Bond Investments
- Potential capital gain when market prices of bonds increases.
- Regular coupon payment
- Diversification of portfolio
- Rated by international rating house (e.g. Moody's, Standard and Poors)
Usually, each bond issue has a fixed interest rate, which is also known as coupon, and it has tenure, ranging from 1 month to 30 years. Upon maturity, the issuer repays the "face value" of the security in full, along with any residual coupon payment outstanding.
Two most common types of bonds are:
- Fixed Rate Bond
Pays a fixed amount of interest on a regular basis (quarterly, semi-annually or annually)
- Zero Coupon Bond
Usually offered at a discount, a result of the issuer paying all future coupon up-front. As such, there will not be any regular coupon payments made.
Structured Notes are debt instruments structured to link possible coupon payments or the market value of the Notes to the performance of underlying financial instruments or markets.
Benefits Of Structured Notes
- Flexible and customizable product solutions
- Tailored Risk-return pay-off
- Views on different asset classes
Structured Notes consist of these underlyings, which may include, but are not limited to the movement of interest rates, equities, indices, credit markets or even, a basket of these instruments. The structures usually have one or more embedded options or may employ other derivatives strategies.
Investments in Structured Notes may not have principal repayment at maturity, and where principal repayment at maturity is provided, it is with certain conditions, including, inter alia, that the Structured Notes are held until maturity and are subject to the credit risk of the Issuer of such Structured Notes. Structured Notes are usually available in various tenures, denominations & currencies and are issued by institutions worldwide.
These securities are obligations only of the issuer. Unless otherwise stated, they are not bank deposits or obligations of or guaranteed by Citibank Singapore Limited, Citigroup, Inc. or any of its affiliates or subsidiaries, and are subject to investment risks (e.g. credit, price, liquidity, sovereign, etc), including the possible loss of the principal amount invested. Prices of bonds can be volatile and past performances are not indicative of future performance. Investors investing in securities denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal. Exchange controls may be applicable from time to time to certain foreign currencies. You should therefore determine whether any foreign currency investment is suitable for you in light of your investment objectives, your financial means and your risk profile. These securities are not available to US Persons. Investment products are not deposits, are not subject to the provisions of the Deposit Insurance Act and Policy Owners' Protection Schemes Act 2011 of Singapore, nor eligible for deposit insurance coverage under the Deposit Insurance Scheme.