Bonds and fixed-income, with risk clearly in view
Fixed-income instruments can add income and stability to a portfolio, provided you understand who is borrowing, for how long and at what risk.
Overview
Bonds are loans made to governments or companies in return for interest and the repayment of principal at maturity. They range from government securities to corporate bonds of varying credit quality and tenure.
We help you relate income needs and time horizons to the available instruments, weigh yield against credit quality and liquidity, and keep fixed income in proportion to the rest of the portfolio. Availability depends on our actual offering at the time.
What clients typically look for
- Regular income or a predictable pattern of cash flows
- A stabilising allocation alongside equity holdings
- Understanding of ratings, issuer quality and maturity choices
- Awareness of how interest-rate movements affect bond values
Key considerations and risks
- Credit risk: an issuer may delay or default on interest or principal
- Interest-rate risk: bond prices generally move inversely to interest rates
- Liquidity risk: some bonds are hard to sell before maturity at a fair price
- Reinvestment risk when coupons or maturities are reinvested at lower rates
- A higher yield usually reflects higher risk, not a free benefit
How the conversation works
Define income needs
We discuss how much income you need, when and for how long.
Match maturities
We consider tenures that line up with your cash flow and liquidity needs.
Assess issuers
We explain ratings, issuer quality and concentration so risk is visible.
Review regularly
We revisit holdings as rates, ratings and your needs change.
Frequently asked questions
No. Government securities carry lower credit risk, but all bonds can be affected by interest-rate movements, and corporate bonds carry issuer credit risk.
A rating is an agency's opinion on an issuer's ability to repay. It is a useful input but not a guarantee, and ratings can change.
Often yes, but the price depends on market conditions and liquidity, and you may receive less than you paid.
Important information
Fixed-income investments are subject to credit, interest-rate and liquidity risks. Returns and capital are not guaranteed. Eligibility and availability depend on individual circumstances and applicable regulations. This page is general information and not personalised advice. See our risk disclosures.
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