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Bonds
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Bonds investment service with KGI Asia
When you invest in the bond market, you deposit a lump sum of which will be used to increase the value of your investment.
More Flexible and Choices
Invest for sustainble income, growth or both with our wide range of bond options across different bond issuers and currencies.
Bonds Overview
​KGI has extensive experience in helping our clients to choose their suitable bonds, which include different bond issuers and currencies. We also provide clients with the latest bond market updates and information.
Sovereign Debt
Sovereign debt refers to bonds issued by the government's financing departments or agencies. Sovereign debt can be a bond issued by a company with a close relationship to or supported by the government.
Issuer
Securities / Coupon / Maturity
Currency
Risk
Rating
Issuer
U.S. Treasury Bonds
Securities / Coupon / Maturity
T 2.25 03/31/20
Currency
USD
Risk
Low
Rating
Aaa/AAA
Issuer
REPUBLIC OF INDONESIA
Securities / Coupon / Maturity
INDON 5.875 01/15/24
Currency
USD
Risk
Mid
Rating
Baa2/BBB/BBB
Issuer
FED REPUBLIC OF BRAZIL
Securities / Coupon / Maturity
BRAZIL 8 1/4 01/20/34
Currency
USD
Risk
Very High
Rating
Ba2/BB-/BB-
Issuer
SAUDI INTERNATIONAL BOND
Securities / Coupon / Maturity
KSA 3 1/4 10/26/26
Currency
USD
Risk
Mid
Rating
A1/A-/A
Issuer
ARAB REPUBLIC OF EGYPT
Securities / Coupon / Maturity
EGYPT 7 1/2 01/31/27
Currency
USD
Risk
High
Rating
B2/B/B+
Main Risks
  • Sovereign debts and pursed sovereign debts usually have higher ratings, and the default risk is relatively low.
  • Price fluctuations are mainly affected by macroeconomics.
  • Longer bond duration increase interest rate sensitivity.
Investment Grade
Bonds with credit ratings above Baa3 / BBB- (inclusive) are better rated bonds and are suitable for stable investors.
Issuer
Securities / Coupon / Maturity
Currency
Risk
Rating
Issuer
SINOPEC GRP OVERSEA 2015
Securities / Coupon / Maturity
SINOPE 3.25 04/28/25
Currency
USD
Risk
Mid
Rating
A1/A+
Issuer
SWIRE PROPERT MTN FIN
Securities / Coupon / Maturity
SWIPRO 3 1/2 01/10/28
Currency
USD
Risk
Mid
Rating
A2/A
Issuer
TSMC GLOBAL LTD
Securities / Coupon / Maturity
TAISEM 1 3/4 04/23/28
Currency
USD
Risk
Mid
Rating
Aa3/AA-
Issuer
APPLE INC
Securities / Coupon / Maturity
AAPL 3.35 02/09/27
Currency
USD
Risk
Mid
Rating
AAA/AA+
Issuer
CONOCOPHILLIPS COMPANY
Securities / Coupon / Maturity
COP 5.95 03/15/46
Currency
USD
Risk
Very High
Rating
A3/A-/A-
Main Risks
Bondholders are exposed to a variety of risks, including but not limited to:
 
  • Rating risk - bonds are subject to the risk of the issuer defaulting on its obligations. It should also be noted that credit ratings assigned by credit rating agencies do not guarantee the creditworthiness of the issuer; 
  • Liquidity risk - some bonds may not have active secondary markets and it would be difficult or impossible for investors to sell the bond before its maturity;
  • Interest rate risk – Sovereign investment bonds are more susceptible to fluctuations in interest rates and generally prices of bonds will fall when interest rates rise.
  • Repurchase risk: When bond issuers exercise repurchase rights before the bonds mature, investors face reinvestment risks.
High Yield Bond
Bonds with a credit rating below Ba1 / BB+ (inclusive) are higher risk bonds.
Issuer
Securities / Coupon / Maturity
Currency
Risk
Rating
Issuer
Software Bank CORP
Securities / Coupon / Maturity
SOFTBK 6.125 04/20/25
Currency
USD
Risk
High
Rating
Ba3u/BB+
Issuer
GOODYEAR TIRE & RUBBER
Securities / Coupon / Maturity
GT 4 7/8 03/15/27
Currency
USD
Risk
High
Rating
B2/BB-/BB-
Issuer
OCCIDENTAL PETROLEUM CORP
Securities / Coupon / Maturity
OXY 3 1/2 08/15/29
Currency
USD
Risk
High
Rating
B1/BB+/BB+
Issuer
TELECOM ITALIA CAPITAL
Securities / Coupon / Maturity
TITIM 7.2 07/18/36
Currency
USD
Risk
Very High
Rating
B1/BB-/BB
Issuer
MINERVA LUXEMBOURG SA
Securities / Coupon / Maturity
BEEFBZ 4 3/8 03/18/31
Currency
USD
Risk
High
Rating
BB/BB
Main Risks
In addition to the general risks listed in investment grade bonds, there are other risks and complex features, including but not limited to the following:
 
  • Higher credit risk: High-yield bonds are usually rated below investment grade or are not rated at all and the issuer's default risk involved is often higher.
  • Subject to economic cycle changes: When there is downturn economy, the prices of high-yield bonds tend to fall more than investment-grade bonds because of the increased risk of default.
  • Multi-guaranteed / cross-guaranteed (non-single-credit-backed) bonds, in which these support providers (multiple guarantors) may not have significant operations or their support may be subordinated.
Perpetual Bonds
Bonds without maturity, but usually comes with clauses for early redemption clauses and reset of coupons levels.


Issuer
Securities / Coupon / Maturity
Currency
Risk
Rating
Issuer
CHALIECO HONG KONG CORP (China Aluminum International)
Securities / Coupon / Maturity
CHALUM 5 PERP Corp
Currency
USD
Risk
Very High
Rating
B+
Issuer
PHOENIX LEAD LTD (CK Infrastructure Holdings Ltd)
Securities / Coupon / Maturity
CKINF 4.85 PERP
Currency
USD
Risk
Very High
Rating
BBB+
Issuer
GEELY AUTOMOBILE
Securities / Coupon / Maturity
GEELY 4 PERP
Currency
USD
Risk
Very High
Rating
Baa3
Issuer
ELECT GLOBAL INV LTD (Hysan Development Co Ltd)
Securities / Coupon / Maturity
HYSAN 4.85 PERP
Currency
USD
Risk
Very High
Rating
A3
Issuer
VOLKSWAGEN INTL FIN
Securities / Coupon / Maturity
VW 3 1/2 PERP
Currency
EUR
Risk
Very High
Rating
Baa2/BBB-/BBB
Main Risks
Perpetual bonds have additional risks and complex characteristics including (but not limited to) the following:
  • Perpetual bonds (Perp): Bonds have no maturity date, and generally watch out for any early redemption clauses.
  • Floating rate coupon can be reset (change): coupon can be reset on reset date, based on benchmark (such as LIBOR or Treasury rate) + fixed credit spread.
  • Coupons can be deferred (accumulative or non-cumulative): is a common feature in perpetual bonds, while the bank's Contingent Convertible Bonds (CoCo) coupons must be deferrable and non-cumulative.
Convertible Bonds
If the stock price exceeds the conversion price, bonds are convertible to ordinary shares, otherwise be held as ordinary corporate bonds with a floor.

Issuer
Securities / Coupon / Maturity
Currency
Risk
Rating
Issuer
PHARMARON BEIJING CO
Securities / Coupon / Maturity
PHABEI 0 06/18/26
Currency
USD
Risk
High
Rating
N/A
Issuer
ESR GROUP LTD
Securities / Coupon / Maturity
ESRCAY 1 1/2 09/30/25
Currency
USD
Risk
High
Rating
N/A
Issuer
XIAOMI BEST TIME INTL
Securities / Coupon / Maturity
XIAOMI 0 12/17/27
Currency
USD
Risk
Mid
Rating
N/A
Issuer
MEITUAN
Securities / Coupon / Maturity
MEITUA 0 04/27/28
Currency
USD
Risk
Mid
Rating
Baa3
Issuer
IQIYI INC
Securities / Coupon / Maturity
IQ 4 12/15/26
Currency
USD
Risk
High
Rating
N/A
Main Risks
  • Normally comes with low or zero coupons. There may exist of buyback clauses, and Puttable clauses for investor rights.
  • CBs also comes with interest rate risk, credit risk, liquidity risk.
Specific terminology of convertible bonds (CB)
  • Face Amount (Denomination)
  • Coupon rate
  • Issue date / issue price
  • Maturity Date / Maturity Redemption Price
  • Conversion Price
  • Conversion ratio = face amount / conversion price
CoCo Bond
It is usually issued by a bank or financial institution. Capital Securities (CoCos) are hybrid capital securities that absorb losses when the capital of the issuing bank falls below a certain level.
Issuer
Securities / Coupon / Maturity
Currency
Risk
Rating
Issuer
HSBC HOLDINGS PLC
Securities / Coupon / Maturity
HSBC 6 Perpetual
Currency
USD
Risk
Very High
Rating
Baa3/BBB
Issuer
BNP PARIBAS
Securities / Coupon / Maturity
BNP 6 5/8 PERP
Currency
USD
Risk
Very High
Rating
Ba1/BBB-/BBB
Issuer
STANDARD CHARTERED PLC
Securities / Coupon / Maturity
STANLN 7 3/4 PERP
Currency
USD
Risk
Very High
Rating
Ba1/BB-/BBB-
Issuer
UBS GROUP AG
Securities / Coupon / Maturity
UBS 7 PERP
Currency
USD
Risk
Very High
Rating
BB+/BBB
Issuer
BARCLAYS PLC
Securities / Coupon / Maturity
BACR 7 1/8 PERP
Currency
GBP
Risk
Very High
Rating
Ba2/B+/BBB-
Main Risks
In addition to risks arising from general bonds trading, the risks involved in CoCo Bond include (but not limited to):
 
  • Subordinated bonds: the order of claim goes after senior debt, but prior to common stock (AT1 and T2)
  • Loss-absorbing Capacity: bonds have contingent write down or loss absorption feature and the bond may be written-off fully or partially or converted to common stock on the occurrence of a triggered event.
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Various Structured Products to enhance your investment return. Visit this section to learn more.
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