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Investing in Bonds

is there any list where i can check for local company bonds offering and their current yields?

looks like i need to check the business section of periodics or online sites to find out which companies are currently offering bonds and their interest yields all the time.
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Comments

  • May fixed rate, floating rate, zero coupon, inflation linked asset backed securities, subordinated, perpetual, bearer bonds, lottery bond, war bond, serial bond, revenue bond


    Anong klaseng bonds ang available dito sa pilipinas at ano ang pinaka maganda?
  • bangkeroboy21bangkeroboy21 PEx Rookie ⭐
    parang 5 yr td siya usually...you lend money and you get paid interest quarterly, best govt bond, guaranteed by gov't
  • BULAKENYO1980BULAKENYO1980 PEx Influencer ⭐⭐⭐
    50K ba talaga ang minimum?

    At mas maganda ba kung bibili ka habang bagong offer?

    Pag hindi, may patong na yung bank na binilihan mo, o mas mas konti na ang makukuha mo na interes?
  • bangkeroboy21bangkeroboy21 PEx Rookie ⭐
    more often than not, the interest is fixed, mas maganda FRESH bonds (primary market), kasi bonds are basically commodities not too far divorced from stocks, and bond prices are also subject to market forces, they go up and down.

    the most common minimum amount is 100k
  • Bonds are available at PSE right?
  • Jspice wrote: »
    Bonds are available at PSE right?

    no. only stocks and warrants are traded in pse.

    bonds has its own otc market and bond traders are different from stock brokers.

    if you want to invest in bonds or tbills, call the treasury dept of your bank or any investment bank around. make sure you have at least P100k.
  • Is it easy to sell bonds before maturity? I don't really care if its a profit at that time or a loss, so is it easy? how do i sell it?
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    First, how did you acquire the bonds?
  • KuyaDanny wrote: »
    First, how did you acquire the bonds?
    uhh, oh yeah how do you invest in bonds? I heard its like lending your money to companies and you get a certificate right? sorry if im asking such questions :depressed: i dont have a lot of knowledge in investment since im only in highschool lol
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    OK, I think I see where you are coming from.

    You can buy bonds from a bond dealer, usually a bank or big financial institution. Most investors will not need to get a certificate issued to them, and instead opt to keep the paper in a custodianship account. It makes things easier when selling time comes around.

    The same dealer who sells the bonds can buy them, or find someone else to buy them. It is relatively easy to do if the bonds have ready buyers.
  • May minimum investment required ba? I have conceptual knowledge on investing/trading in bonds, but I don't know how to do it in actual (Philippine setting). Can a common investor, invest on bonds by himself? Usually kasi dumadaan na lang via Private banking (clients' portfolio being handled by professionals).

    Right now, I just invest on Bond UITFs.
  • ^ Yeah, how can i invest in bonds like the bonds san miguel was offering before? 11%?
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    You must have a lot of money.

    I used to be able to buy bonds from BPI Capital Corporation. Many years ago they would sell me as little as P250,000 per issue. Now I can only buy bonds through my BPI branch, usually with a minimum trade size of P1.0 million. Too big for me. So, like the fellow above, my bond investing is done through UITFs and mutual funds now.
  • I didn't know that the minimum investment for bonds is quite high. You see I'm trying to follow an invesment strategy which is 90% index funds and 10% bonds. So KuyaDanny what do you suggest?
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    If you cannot make the minimum lot for bonds, then you can do as I do - invest in bonds through UITFs/mutual funds. Obviously you will not get the same result as investing in bonds directly, but this might be the only way to accomplish your objective at this stage.
  • randolfcedric01randolfcedric01 PEx Veteran ⭐⭐
    well for me guys the safest way to trade in bonds is to buy Tbonds from any bank it is government guaranteed and sure na mababayaran ka unless magcollapse ang govt. hehehe I know Chinatrust bank offers 7% then minimum is P250,000 but according to law it should only be P5000 min. investment tsk! tsk! kaya tuloy yung mahihirap na katulad ko hindi makapaginvest kasi hinaharangan ng mga mayayaman ang pagunlad nating mahihirap by monopolizing this investments and trades! imagine nio dapat itinuturo to sa highschool palang para matutong magsumikap ang dating JUan tamad!
  • well for me guys the safest way to trade in bonds is to buy Tbonds from any bank it is government guaranteed and sure na mababayaran ka unless magcollapse ang govt. hehehe I know Chinatrust bank offers 7% then minimum is P250,000 but according to law it should only be P5000 min. investment tsk! tsk! kaya tuloy yung mahihirap na katulad ko hindi makapaginvest kasi hinaharangan ng mga mayayaman ang pagunlad nating mahihirap by monopolizing this investments and trades! imagine nio dapat itinuturo to sa highschool palang para matutong magsumikap ang dating JUan tamad!
    Agree! They should teach investing in high school since it applies to everyone regardless of their course. Unlike El Fili and Noli which probably have the same importance as ingrown-toenails.
  • bankerIIbankerII PEx Veteran ⭐⭐
    Why I want to be a doctor:

    before - Because I want to help the poor.

    now - Because I want to be RICH!

    O tempora o mores!
    :naughty:
  • You can buy bonds through most bank branches. And no, you don't need ridiculously large amounts of money to get in (at least for the peso bonds). Minimum unit I think is around 10k, but the least amount I've seen transacted by friends is 50k. I usually get in in multiples of 100k for easy computations :D.

    Metrobank/BPI branch managers know the process for these things. The best way to get bonds is to wait for news in newspapers of government offerings and then discuss your desire to procure with the managers. They will gladly assist you with the process. (note: the managers dont directly work with the bonds. they just assist you, while the rest is done by the asset management group of the bank, e.g. BPI Capital)

    You can also buy from the secondary market if you specify that to the manager, however, note that depending on the economic situation, a single unit of bond may be more expensive (and given the situation we have now, they ARE. A 10% coupon rate dollar bond for example, is currently selling for about 160$ for every 100$ of debt.)

    Buying from an initial offering guarantees that you will buy a 100 peso debt at 100 pesos or whichever currency is offered. See the advantage? (Just note that due to the economic situation, offers today have low yields, like less than 6% per annum for both pesos and bonds, but still better than time deposits)

    Once the sale is done, you'll get quarterly updates on the face value of your bonds (which change everday, and you can check in PDEX if you can understand half of the info they have on their site)

    Selling is easier. You can call the portfolio manager whose contacts can be found in a statement sent to you by the bank after you get your receipt, or you can contact the manager again to inquire the price, and if you want to sell. Depending on the bank, they may require you to drop by the bank and give a letter of authorization. The money will be deposited the account of your choice.


    I wrote a short article on the topic a few years back, but note that I wrote this guide before I started working with peso bonds, so the minimums might be different already.
    http://redkinoko.blogspot.com/2010/03/philippine-bond-investment-101.html
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    I think the above poster is referring to Retail Treasury Bonds, a special class of government securities that are sold in small lots to accommodate retail investors.

    I still think bonds outside this class are rarely sold in lots less than a million pesos. If you can find a good dealer who can do this for customers, let us know who that dealer is so we can send some business his way. I am a long-time BPI customer, and I can't seem to get this kind of accommodation from the bank.
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