Bonds

 

Renesource Capital’s brokerage department specialists will apprise you of the investment opportunities in debt instruments and will help you to create an optimal portfolio according to your individual risk preferences.

Why invest in bonds?

If you are not satisfied with the classic deposit rates, but you wish to invest your capital and to receive the interest income specified in advance, consider investing in government or corporate bonds. It’s a great alternative to deposits and enables you to receive not only interest income, but profits from changes of the bond market price as well. Renesource Capital will help you to choose bonds corresponding to your risk tolerance.

Investment into bonds is similar to a loan that an investor gives to a corporation or a government. During the tenor of the bond, the lender (the holder) receives the interest income, while the borrower (the issuer) has the opportunity to manage the borrowed funds. At the maturity, the issuer repays the principal (nominal) amount of the bond to the lender (the current holder of the bond).

Bonds are usually considered to be conservative financial instruments. Nevertheless, some bonds are characterized by high volatility and significant credit risk or other risks. However, the proper analysis of the market and of each specific issue gives investor the opportunity to choose such bond, which will allow not only to diversify their investment portfolio, but also to create a combination of assets which would most fully suit the investment objectives.

The distinction between bonds and other financial instruments is the wide selection of the portfolio diversification factors, such as:

  • Earning power;
  • Currency;
  • Risk (invetment rating);
  • Term of investment.

Why trade bonds with Renesource Capital?

Renesource Capital advantages:

  • Renesource Сapital offers customers wide selection of government, municipal and corporate bonds;
  • We offer customers the competitive commission fees and strive to provide the best execution of their orders using the wide network of our counterparties around the world.
Trading is easy with Renesource Capital

We offer customers the opportunity to carry out classic broker trades. A broker will help you to conduct the trade, to place an order and will keep you informed about the most important market news.

Advantages of classic broker trades:

  • The opportunity to contact a broker over the phone or by email;
  • Prompt placement of orders;
  • Consulting, trading ideas and suggestions.

Renesource Capital acts as a broker/agent in trades with bonds. Bonds, purchased by Customers, are kept on off-balance nominee accounts of Renesource Capital with clearing depositories: NASDAQ OMX, Clearstream Banking, Euroclear Bank, Euroclear UK/ Crest, State Street and others. All corporate events, including coupon interest payments by an issuer and payment of the principal amount, are transferred directly to a customer’s financial instruments account.

Risk Disclosure Statement. Margin transactions (Forex, contracts for difference CFD, futures and futures options, stock options, REPO transactions, transactions in over-the-counter derivatives and transactions using broker credit, including selling short) involve higher risk. The level of risk increases with the leverage ratio. As the result of margin transactions, relatively high profits are possible with low level of initial investments, as well as significant losses which may exceed the principal amount of investments or the amount of the collateral. Please ascertain whether margin transactions in their essence and content suit the risk profile that was assigned to you by AS IBS Renesource Capital and whether the content of margin transactions corresponds to your investment goals.