Bonds

Bonds - An introduction

Level: Beginner / Length: 18 minutes

In this first module about bond trading you’ll be given a broad understanding of the bond market. You’ll look at those people and institutions that issue bonds as well as what bonds are actually used for.


Why are Bonds issued? Through a series of simple videos you’ll learn about how Bonds are used.

You’ll explore key terms such as ‘yield to maturity’ and ‘coupon’ in order to enhance your understanding of Bonds.


Bonds are one of the oldest types of financial instrument in the world and also one of the easiest to understand. In essence, a bond is an IOU where the borrower (called the issuer) borrows money from a lender (the investor) and agrees to pay interest in return. Bonds are interesting because their value is often determined by global events. For example, bonds issued by a very safe and stable country (like Germany) only carry a very low rate of interest. On the other hand, a country without that stability – at war, a government mismanaging state finances etc - will find that investors will demand a higher price (interest rate) to lend them money. In this course you’ll learn about:

  • How corporations and countries use bonds
  • The structure of a bond
  • Bondholders vs stockholders
  • The meaning of key terminology associated with bonds

Saxo Capital Markets HK Limited
19th Floor
Shanghai Commercial Bank Tower
12 Queen’s Road Central
Hong Kong

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Hong Kong S.A.R
Hong Kong S.A.R

Saxo Capital Markets HK is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo Capital Markets HK Limited holds a Type 1 Regulated Activity (Dealing in securities); Type 2 Regulated Activity (Dealing in Futures Contract); Type 3 Regulated Activity (Leveraged foreign exchange trading); Type 4 Regulated Activity (Advising on securities) and Type 9 Regulated Activity (Asset Management) licenses (CE No. AVD061). Registered address: 19th Floor, Shanghai Commercial Bank Tower, 12 Queen’s Road Central, Hong Kong

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