I get this question a lot, so I thought I discuss it in-depth in the next few articles. The post is geared towards investors based in Singapore.

Bond Fundamentals 101

The best way to think about bonds are that they are essentially IOUs.

Imagine a friend came to you looking for an investment. He has been working in the F & B industry for a couple of years, has saved up some money and is looking to come out to start his own café.

He doesn’t have enough money for the equipment and staff on day 1, and needs additional money to start his business. He owns a flat that is fully paid up, and some savings which he will invest into the business if he can find enough partners.

Now there are two ways you can invest – either the equity or the debt.

If you invest in the