Bonds

Bonds - How is a bond structured?

Level: Beginner / Length: 18 minutes

In this module, we'll describe what happens when a bond first comes into existence. This is called the bond’s ‘issuance’ and there are a number of decisions that have to be made around this process. We'll look at how bonds are structured to make them attractive to investors and how the end-to-end process works.


The auction process involves investors bidding on the bond…

How much would you earn on an investment?


There are lots of factors relating to the initial investment, the rate of return and what happens at the end of the bond’s lifetime? There are also considerations to be made in regarding the issuers creditworthiness and the legal obligations. We’ll also give you an example of buying a bond and explain how and when you’d receive payments.

  • The auction process – bids, issuers and investors
  • What rate will you receive on your investment?
  • Buying a 5 year bond – how does it work?
  • Is the issuer creditworthy?

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

International

Trade responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.