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Debt Securities Services
Important Note: Structured notes are structured products involving derivatives. The investment decision is yours but you should not purchase such product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives. |
When you’re looking for stable income and sure-footed help in achieving it, you will want to look at our Debt Securities Services to help you reach your goals.
What are debt securities?
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Debt instruments are issued by governments, quasi-government bodies or large corporations to raise capital, which may be in the form of bonds, notes, etc
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In general, the issuer promises to pay you interest (the coupon) on a regular basis throughout the life of the instrument and then repay you the stated principal (the face value) at its maturity (for principal-protected debt securities)
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Some debt securities have a guarantor who guarantees the payment and delivery obligations of the issuer
How do Bonds work basically?
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Fixed Rate Bonds – Bonds that pay a fixed amount of interest at regular intervals. These are the most common bond type in the market
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Floating Rate Bonds – Bonds whose interest rate is adjusted periodically according to a pre-specified money market benchmark rate (such as LIBOR–London Interbank Offered Rate)
What are structured notes?
Structured notes are highly customized investment instruments. There are generally no subscription fees and management fees for structured notes. Also, structured notes provide you with a series of choices that are linked to different underlying assets and with various capital protection levels as well as investment tenors:
| Underlying Asset | & | Capital Protection Level | & | Investment Tenor |
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What are the minimum investment amounts and fees?
The minimum investment amount can be as low as HKD10,000.
| Services | Fees |
| Purchase/sell transaction (for secondary market transaction only) |
0.75% of debt securities' face value for each transaction |
| Safe custody | Free of charge |
| Interest collection | Free of charge |
| Maturity redemption (cash) | Free of charge |
| Maturity redemption (stock delivery) | 0.25% settlement fee |
| Transfer in/out request | HKD500 per request |
Risk Disclosure Statement:
- The price of bonds/structured notes can and does fluctuate and the price of any individual bonds/structured notes may experience upward or downward movements and may even become valueless. There is an inherent risk that losses may be incurred rather than profits made as a result of trading bones/structured notes. Independent assessment of the risk and appropriateness of the transaction in light of your own objectives and circumstances, including the possible risks and benefits of entering into such transaction, should be considered before entering into any transaction.
- This information is based on, or derived from, information obtained from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. It is prepared solely for your reference and no responsibility is accepted for use of or reliance on this information. This information is neither a recommendation nor an offer or a solicitation of an offer to buy or sell any bonds/structured notes.
