Bonds
An alternative for those seeking stability and predictable income.
Bonds
An alternative for those seeking stability and predictable income.
What are bonds?
Bonds are financial debt instruments issued by governments, companies, or governmental entities. Those who purchase a bond lend money to the issuer in exchange for periodic interest payments over a specified period.
At maturity, the issuer reimburses the nominal value to the holder. Bonds are used by governments to finance projects and by companies to raise funds. They are considered fixed-income assets as they offer a predetermined regular interest payment.
Main features
Medium / Long term
In terms of maturity, there are various alternatives available.
Fixed income
The cash flow and its adjusting variables are known in advance (issuance conditions).
Security / Liquidity
Depending on the credit, the issuing currency, and the term, it is subject to different security and liquidity conditions.
Risk
It is recommended for moderate risk profiles although there are some highly speculative credits.
Why invest in bonds?
Investing in bonds provides stability and predictable income generation through regular interest payments. Bonds offer diversification and flexible alternatives, with different maturities and levels of security, making them an essential tool for building a balanced portfolio tailored to your financial goals.
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