Bonds are one of those investment products which provide fixed income to the investors. Moreover, they are included in the list of the safest investment options as they are issued by government organizations or big business corporations. The bond buyers are creditors to the corporations as a bond is a type of loan instrument issued in order to raise capital for the expansion or increase in business operations of the corporation.
How do investors make money by buying bonds?
There are two ways by which investors can make money by buying bonds:
- The first method of earning money from bonds is that the person keeps the bonds till maturity and receives the interest which is paid by the corporations twice a year.
- The second method is to sell the bond at a higher price than the price at which it was purchased by the investor.
Trading of bonds:
After getting issued in the primary market, bonds are traded in two ways,
- First, they can be traded at the exchanges just like the shares.
- Secondly, they can also be traded in the over-the-counter (OTC) markets where the buyer and dealers can make a deal without being overseen by the regulatory authorities of the exchange.
Online trading of bonds:
Just like the shares, the trading of bonds can also be done online either from your laptops or mobile. However, nowadays people like to have access to online trading through their mobiles and for this purpose, BondEvalue has designed a bond trading app for its customers. BondEvalue is a group of individuals who are passionate about bond trading and know that soon technology will have a great impact on the method of trading in bonds. They identified the need for a bond trading app and designed it keeping in mind the needs and requirements of a trader.
How does this app help customers?
This app helps customers by providing them with bond prices on their mobile screens along with giving them the latest information about the market so that they can make correct decisions regarding their investments. It also helps the customer in deciding which bonds to purchase depending on many factors such as country, currency, tenor, return, etc.
Is it possible for an investor to invest in bonds of another country?
Yes, it is possible for an investor to invest in the bonds of another country and one such bond is USD bonds. Also called Dollar bonds, they are US-denominated bonds that are traded outside the United States and along with the principal, the coupon payments are also made in the US currency.
Investors like to deal in USD bonds for two reasons; firstly, they are denominated in dollars which guarantees them more return as the value of the dollar is more than most of the currencies. The second reason is that the return provided by the US corporations on the USD bonds is far higher than what is offered by the corporations of the same country to which the investor belongs.
The customers of BondEvalue have the option of using a bond trading app for a better experience. In addition, they can also receive proper guidance in case they want to invest in USD Bonds.
