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Unlock higher returns than traditional savings!

Bonds are debt instruments issued by the corporates to raise fund for their operation or investment, where the investor acts as a creditor and the issuer a debtor. They come in two primary forms: government bonds, issued by the state, and corporate bonds (also known as “debentures”), issued by companies. Investors receive regular returns in the form of "interest" throughout the bond's term and are repaid the principal amount upon maturity.

Things to consider before investing

Who is this suitable for

For investors seeking stability and assured returns
Individuals seeking consistent returns.
General investors interested in specified investment period.
Those who are willing to wait for returns at predetermined time.

Getting started

Minimum investment amount is subject to the specified conditions Please refer to individual product details for more information). All investments are subject to the terms and conditions of the respective product

Risks

Varies from low to high risk.
Liquidity risk.
Interest rate risk.
Credit risk.

Why Choose Corporate Bond with Maybank?

Over 30 years of expertise in investment management
A wide range of products to meet your needs
Backed by a Strong parent company in ASEAN
Invest with confidence in bonds that come with guarantees

Why invest in corporate bonds?

Higher returns than savings accounts and governmen

Enables consistent long-term savings.

Helps diversify your investment portfolio.

Can be traded in the secondary market

(subject to product-specific conditions).

Enhance your return potential

while diversifying your investment portfolio

Bonds offer a low-risk investment option

Product Categories

Choosing to invest in bonds

Choose Based on Credit Ratings

Investing in bonds with high credit ratings can help mitigate the risk of default. For example, bonds rated AAA are considered among the safe investments. In Thailand, two accredited rating agencies: TRIS Rating Co., Ltd. and Fitch Ratings (Thailand) Limited, provide these ratings.

Advantages:

Lower risk of default.
Enhance confidence in the investment.
Suitable for investors seeking stability.

Disadvantages:

Interest rates may be lower compared to higher-risk bonds.

Choose Based on Returns

Opting debentures with higher returns can enhance the potential for profit, but it is important to be aware of the increased risk as well.

Advantages:

Potential for higher returns.
Greater investment return.

Disadvantages:

Higher risk of default.
Requires careful analysis and ongoing monitoring of the issuer's performance.

Choose Based on Bond Maturity

Selecting bonds with short or long maturities that is align with your individual needs and investment strategy.

Advantages of Short-Term Bonds:

Higher liquidity.
Ideal for investors seeking a quick return of principal.

Disadvantages of Short-Term Bonds:

Typically offer lower returns compared to long-term bonds.

Advantages of Long-Term Bonds:

Potential for higher returns.
Suitable for investors aiming for long-term savings.

Disadvantages of Long-Term Bonds:

Lower liquidity.
Higher investment risk e.g. interest rate risk, credit risk.

Choose Based on the Issuing Company

Investing in bonds issued by reputable companies with strong financial stability (or “investment--grade bond”) can enhance confidence in your investment.

Advantages:

Lower risk of default.
Provide consistent long-term returns.

Disadvantages:

May offer lower interest rates compared to bonds from higher-risk companies.

Types of Bond

Currently, companies can issue various types of bonds to meet their financial management needs, attract investors’ interest, and manage their financial costs. Each type of bond carries different levels of risk, particularly in cases where the issuer is under asset protection, declared bankrupt by the court, or undergoing liquidation. The following outlines the different types of bonds available.

Senior Bond

Senior bonds have equal claims with other general creditors and rank above subordinated bondholders, preferred shareholders, and common shareholders in asset claims.

Advantages:
- Lower risk compared to subordinated bonds.
- Suitable for investors seeking stability in their investments.
- Provide consistent and predictable returns.
Disadvantages:
- Offers a lower return rate compared to subordinated bonds

Subordinated Bond or Junior Bond

Subordinated bonds rank below other creditors in claims on the issuer’s assets but above preferred and common shareholders, who are last in line.

Advantages:
Offer higher interest rate than non-subordinated bonds.
Enhance diversification within an investment portfolio.
Suitable for investors willing to take on higher risk for potentially greater returns.

Disadvantages:
Receive principal repayment after other senior creditors.
Issuer can defer interest payment without incurring default clause.

Convertible Bond

A convertible bond lets investors convert their bonds into the issuer's common shares, potentially profiting from a rise in share price. If shares are below the conversion price, investors can keep the bond, earning interest and receiving the principal at maturity.

Advantages:

Potential for profit through conversion to common stock.
Earn interest if the conversion is not executed.
Enhance portfolio diversification.
Suitable for investors looking for both growth potential and regular income.

Disadvantages

May receive principal repayment after other senior creditors.

Secured Bond / Guaranteed Bond

A secured bond is backed by specific assets as collateral giving bondholders a claim to these assets above other general creditors. A guaranteed bond is guaranteed by a guarantor, when in case of Issuer defaults, the guarantor will step in to repay the principal and interest on behalf of the issuer. A bondholder representative typically monitors the status of the collateral/guarantor.

Advantages:

Lower risk compared to unsecured bonds.
Asset-backed collateral provides additional security.
Provides a predictable interest rate.
Suitable for investors seeking safe investments.

Disadvantages

Collateral may not cover the full principal amount
Offers lower returns compared to unsecured bonds

Benefits of Investing in Bonds

Provides Regular Income: Bonds have periodic interest payment to investors and return the principal at maturity, making them suitable for those seeking regular income while keeping their principal remains intact.

Offers Higher Returns than Deposits: Corporate bonds typically offer higher interest rates than government bonds with similar terms, compensating for the higher risk involved.

Tradable: Bonds can be bought and sold in the secondary market, offering liquidity and flexibility for investors.

Prepare Documents

FAQs

Prepare Documents

Identification Card

Bank account for receiving dividends

FAQs

What is a bond?

A bond is a debt security issued by a private company to raise funds for various business activities. Bondholders receive interest payments as agreed and will get the principal back when the bond matures.

What are the risks associated with investing in bonds ?

The risk of investing in bonds depends on the creditworthiness of the issuer, ranging from low to high risk. Investors should check the credit rating before deciding to invest.

How can one start investing in bonds ?

Investors can start investing in bonds by studying the details of each bond from the issuer and purchasing through the designated channels.

What are the returns on bonds ?

Bonds provide returns in the form of interest payments as agreed, which are typically higher than savings accounts and government bonds.

Why should one choose to invest in bonds through Maybank ?

Maybank has experienced investment experts and a wide range of products, capable of fully meeting customers' needs.

Ways to Increase Profit Potential

Choose Based on Credit Ratings

Investing in bonds with high credit ratings can help reduce the risk of default. For example, bonds rated AAA are among the lowest-risk debt securities. In Thailand, there are two accredited rating agencies: TRIS Rating Co., Ltd. and Fitch Ratings (Thailand) Limited.

Advantages:

Reduces the risk of default.
Increases confidence in the investment.
Suitable for investors seeking stability.

Disadvantages:

Interest rates may be lower compared to higher-risk bonds.

Choose Based on Returns

Selecting bonds that offer higher returns can increase the potential for profit, but it is important to consider the increased risk as well.

Advantages:

Potential for higher returns.
Increases investment profit.

Disadvantages:

Higher risk of default.
Requires analysis and monitoring of the issuer's performance.

Choose Based on Bond Maturity

Investing in bonds with either short or long maturities depends on individual needs and risk management.

Advantages of Short-Term Bonds:

Higher liquidity.
Suitable for investors who need quick return of principal.

Disadvantages of Short-Term Bonds:

Generally lower returns compared to long-term bonds.

Advantages of Long-Term Bonds:

Higher returns.
Suitable for investors looking to save money for the long term.

Disadvantages of Long-Term Bonds:

Lower liquidity.
Higher interest rate risk.

Choose Based on the Issuing Company

Investing in bonds from reputable companies with strong financial positions can increase confidence in the investment.

Advantages:

Reduces the risk of default.
Provides consistent returns over the long term.

Disadvantages:

May offer lower interest rates compared to bonds from higher-risk companies.

Risk

Risk: Low – High
Liquidity Risk: Investing in long-term bonds without proper planning may lead to situations where you need to access funds before the bond matures. This may force you to sell the bond in the secondary market, potentially resulting in a loss or not receiving the expected amount if held until maturity.
Interest Rate Risk: Changes in interest rates can affect bond investments. For example, if market interest rates rise, the price of existing bonds may decrease.
Credit Risk: The risk that the bond issuer may fail to repay the debt, which could result in investors not receiving the agreed-upon interest or losing the entire principal amount.

Benefits of Investing in Corporate Bond

Provides Regular Income: Bonds and debt securities pay interest periodically to investors and return the principal amount upon maturity. This is suitable for investors seeking regular income while ensuring the principal remains intact.
Offers Higher Returns Compared to Deposits: Private company bonds often offer higher interest rates compared to government bonds with similar characteristics and maturities. The higher interest compensates for the increased risk.
Tradable: Another advantage of buying bonds is that they can be bought and sold in the secondary market, providing liquidity and flexibility for investors.

Warning

Investing involves risks. Investors should understand the product characteristics, conditions, returns, and risks before making investment decisions.