Bonds

Bonds - How is a bond structured?

Level: Beginner / Length: 18 minutes

In this module, we'll describe what happens when a bond first comes into existence. This is called the bond’s ‘issuance’ and there are a number of decisions that have to be made around this process. We'll look at how bonds are structured to make them attractive to investors and how the end-to-end process works.



There are lots of factors relating to the initial investment, the rate of return and what happens at the end of the bond’s lifetime? There are also considerations to be made in regarding the issuers creditworthiness and the legal obligations. We’ll also give you an example of buying a bond and explain how and when you’d receive payments.

  • The auction process – bids, issuers and investors
  • What rate will you receive on your investment?
  • Buying a 5 year bond – how does it work?
  • Is the issuer creditworthy?


Business Hills Park – Building 4,
4th Floor, office 401, Dubai Hills Estate, P.O. Box 33641, Dubai, UAE

Contact Saxo

Select region

UAE
UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.