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When considering the
investment in bonds, there are two key areas that investors should look at, they are
credit quality and redemption features of a bond. There have been arguments in the market
that investors should consider the strike price at the point of purchase and the yield.
Traditionally, investing in bonds may seem to be sophisticated, it works only as an
institutional investment tool. This misperception has been caused by the traditional
closed-up trading nature of the bond market since general investors usually buy these
bonds from the secondary over-the-counter (OTC) market rather than from an open market. If
investors look at the data available from each bond, you will feel more comforts by
putting your investment in bonds than stocks, as bonds are very transparent and they
usually provide a full list of data, both historic and projected, which investors
would find them comprehensive enough to learn and value each and every bond type according
to their financial strength, expectations and risk tolerance.
Unlike stocks and
corporate bonds which are insecure, Asset-Backed Securities (ABS) are by far one of the
most secure investment available in the financial market next to the U.S. Treasuries. In
general, bonds may be considered as stable but low yield investment products, however,
there are certain bonds structured to generate yields and returns (either full or partial
profit-sharing) much higher than the market average but bear higher investment risks than
most ABS such as Mortgage-Backed Securities (MBS) -- Land Bonds and Property Bonds. These
Bonds are different from the "High Yields" in the market, as they are backed by
certain land and financial assets, and structured with adequate credit supports and
redemption features.
The following criteria
suggest the key areas that investors should look at when evaluating both strengths and
weaknesses of a bond,
 | Credit
quality in respect to ratings assigned by leading credit rating agencies?
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 | What
are the collateralized assets?
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 | Interest
rate movement?
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 | Yields?
Fixed or Floating?
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 | Supply
and Demand?
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 | Life
Expectancy?
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 | Redemption
features?
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 | Issuing
size and volume of transaction?
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 | Market
conditions?
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Alternatively, you may
make use of the Characters
Table available when making the structural comparisons for
different bond types or simply highlight your investment expectations on the table as
screening criteria.
Important Note to
investors: It is important to note that every kind of investment
bears certain level of risk, investors are advised to do some homework themselves or
consult with their qualified investment advisors for comments before their investments.

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Investing in Bonds
One of the most secure
investment tools suits for vast scope of yield or risk expectations

Choice of Bonds
A full spectrum of
Diversified, individually structured investment products

Evaluating Bonds
according to credit qualities,
yields, lives, redemption features...etc.
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