Straight2Bank
Important Note:
Structured notes are structured products involving derivatives. The investment decision is yours but you should not purchase such products unless the intermediary who sells it to you has explained to you that the product is suitable for you in regards to your financial situation, investment experience and investment objectives
Debt Securities Services
Debt Securities Services provide you with various choices of bonds and structured notes to help you diversify your portfolio and achieve your investment goals.
What are bonds?
Bond is a debt instrument where the bond issuer issues the bond for purchase. It is also known as fixed income security, as a bond usually gives regular or fixed return.
Typical bond issuers include: Sovereign entities, Governments/Government agencies, Banks, Non-bank financial institutions, & Corporations.
What are structured notes?
Structured Notes is a debt instrument, embedded with derivatives, which provides you an opportunity to enjoy a potential return or yield enhancement linked to the performance of the underlying assets. You may customise the terms with different asset classes, flexible structures, level of capital protection and investment tenures to match with your investment objectives.
Top Selling Bonds
Bond Name | ISIN No. | Issuer | Currency |
|---|---|---|---|
| ACGB 3.25% 06/21/2039 | AU000XCLWAP3 | Australia Government Bond | AUD |
| MCD 3.625% 09/01/2049 | US58013MFK53 | McDonald’s Corp | USD |
| T 4.375% 08/15/2043 | US912810TU25 | United States Treasury Note/Bond | USD |
| T 1.25% 05/15/2050 | US912810SN90 | United States Treasury Note/Bond | USD |
| T 4.5% 11/15/2054 | US912810UE63 | United States Treasury Note/Bond | USD |
| T 5% 05/15/2045 | US912810UL07 | United States Treasury Note/Bond | USD |
| PRUFIN 2.95% 11/03/2033 | XS2403426427 | Prudential Funding Asia PLC | USD |
| MCD 4.875% 12/09/2045 | US58013MFA71 | McDonald’s Corp | USD |
| T 4% 11/15/2042 | US912810TM09 | United States Treasury Note/Bond | USD |
| T 4.75% 02/15/2045 | US912810UJ50 | United States Treasury Note/Bond | USD |
Note: List above is the popular bonds offered by SCBHK in the specified offer period^. The above information is past sales record and for reference only. It is not and shall not beconsidered as investment advice. It does not constitute any offer or solicitation of offer to subscribe, transact or redeem any investment products. If you would like to obtain the latestinformation on the relevant products, please contact our relationship manager. Suitability assessment is required before subscribing for the relevant products.
^Last update date: 2/10/2025
How does bond work?
| For Illustrative Purposes Only | |
|---|---|
| A client would like to invest in Bond A on 1st July 2017 with bond features as below: | |
| Client Buying Price | 102% |
| Face Value | US$100,000 |
| Coupon Rate / Payout Frequency / Payout Date | 5% p.a. / Once a Year / 31 December |
| Bond Tenor / Bond Maturity Date | 4.5 Years / 31 December 2021 |
| Purchase of Bond | |
| Client Buying Bond at Bond Price of 102% | US$100,000 x 102% = US$102,000 |
| 6-month Accrued Interest Paid to Seller | US$100,000 x 5%p.a. x 6 / 12 = US$2,500 |
| Total Investment Amount Required | US$102,000 + US$2,500
= US$104,500 |
| Case 1: Holding the Bond until Maturity | |
| Client will receive coupon interest every year until maturity (i.e. 5 coupon payments in total during 2017 – 2021) and the bond face value on the maturity date. | |
| Coupon Payment Received | US$$100,000 x 5%p.a. x 5 (i.e. 5 years)
= US$25,000 |
| Bond Face Value upon Maturity | US$100,000 |
| Total Receivable | US$25,000 + US$100,000 = US$125,000 |
| Total Return | US$125,000 – US$104,500 = US$20,500 |
| Case 2: Sell the Bond on 1st Oct 2018 (i.e. 1.25 years later) at the Bond Price of 105% | |
| Client will receive funds from selling the bond with bond price of 105% plus the accrued interest paid by buyer for holding the bond for 9 months after previous coupon payment on 31 December 2017. | |
| Client Selling Bond at Bond Price of 105% | US$100,000 x 105% = US$105,000 |
| Coupon Payment Received by Client on 31 Dec 2017 | US$100,000 x 5%p.a. = US$5,000 |
| Accrued Interest Received from Buyer | US$100,000 x 5%p.a. x 9 / 12 = US$3,750 |
| Total Receivable | US$105,000 + US$5,000 + US$3,750 = US$113,750 |
| Total Return | US$113,750 – US$104,500
= US$9,250 |
| Case 3: Sell the Bond on 1st Oct 2018 (i.e. 1.25 years later) at the Bond Price of 94% | |
| Client will receive funds from selling the bond with bond price of 94% plus the accrued interest paid by buyer for holding the bond for 9 months after previous coupon payment on 31 December 2017. | |
| Client Selling Bond at Bond Price of 94% | US$100,000 x 94% = US$94,000 |
| Coupon Payment Received by Client on 31 Dec 2017 | US$100,000 x 5%p.a. = US$5,000 |
| Accrued Interest Received from Buyer | US$100,000 x 5%p.a. x 9 /12 = US$3,750 |
| Total Receivable | US$94,000 + US$5,000 + US$3,750 = US$102,750 |
| Total Return | US$102,750 – US$104,500
= – US$1,750 (Loss) |
What are structured notes?
UNDERLYING ASSET | CAPITAL PROTECTION LEVEL | INVESTMENT TENOR | ||
|---|---|---|---|---|
Local & Global Equities Commodities Interest Rates Currencies Indices Hybrid Assets | & | 100% Principal Protected Partial Principal Protected Non-Principal Protected | & | Short Term (from 2 months to 1 year) Medium to Long Term (more than 1 year) Early Redemption Feature |
Risk Disclosure Statement
- The price of bonds/structured notes can and does fluctuate and the price of any individual bonds/structured notes may experience upward or downward movements and may even become valueless. There is an inherent risk that losses may be incurred rather than profits made as a result of trading bonds/structured notes. Independent assessment of the risk and appropriateness of the transaction in light of your own objectives and circumstances, including the possible risks and benefits of entering into such transaction, should be considered before entering into any transaction.
Note
This webpage does not constitute any offer, invitation or recommendation to any person to enter into any transaction described therein or any similar transaction, nor does it constitute any prediction of likely future price movements. Investors should not make investment decisions based on this webpage alone. This webpage has not been reviewed by the Securities and Futures Commission or any regulatory authority in Hong Kong.
