A career in bond trading is enormously rewarding from a financial perspective.
What is a bond? In simple language, a bond is just a loan, like the loans you obtain from the bank.
In the bigger picture, Governments and large companies take loans from citizens in the form of bonds. A bond is nothing more than a loan issued by you, the investor, to the Government or any large scale company, the issuer. Since you have given the issuer the privilege to use your money, they pay you something extra in the form of interest payments that are made at a predetermined rate. The interest rate is referred to as a coupon, and the date on which the borrower is bound to repay the money is called the maturity date.
What are the advantages of investing in bond trading at FIRST FINANCIAL?
- Investing is debt safer as compared to investing in equity because if the company gets bankrupt, the debtholders are prioritized for payments over shareholders. So debtors get some of their money back, whatsoever!
- The interest rates on bonds are higher as compared to the rates paid by banks on a savings account. Therefore, if you are saving your money and don’t have to utilize it in the short term, then bonds will give you a greater profit with fewer risks.
- Bonds are undoubtedly a safe and conservative investment