A bond in its simplest form is a loan issued by a government, company or other institution. Instead of taking a loan out through a bank, the borrower approaches investors for capital. The issuer promises to pay a fixed rate of interest or coupon for a fixed period at regular intervals until maturity, upon which they will repay the original loan or capital back to the investors (bondholders). Companies often issue Bonds as a way of financing expansion, rather than issuing further shares.

Investing in wiseAlpha Notes involves risks including potential illiquidity and loss of investment. Our Notes are not deposit based or capital protected and are not covered by the Financial Services Compensation Scheme.The interest rate on our products is not comparable to that of a bank savings account. See Risk Statement.

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