Bond investment may also provide regular stream of interest income and potentially grow your capital in the long term. Investor receives fixed-rate interest income (coupon), usually semi-annually, which remains the same despite how market interest rates might change.

Investors may be able to reap a potential long-term capital gain as bonds offer predictable repayment of principal at maturity. This is because bond prices often move in the opposite direction of market interest rates. Should market interest rates fall, there may be potential for capital gain from price appreciation.

For example,

when Bank Negara continues to raise interest rates in the future, investors can find some gems in the bond pace, especially buying into those bonds where the price falls below 100.

Investors could enjoy the regular income stream + the capital appreciation if hold until maturity.

Besides, during interest rate hike environment, the issuer will offer higher coupon rate to attract new investor.  In the end, investor will enjoy higher coupon rate when they buy into new bond during this period!

FSMOne platform does have the bond Express platform, you can trade your odd lot bond on the Bond Express platform. The liquidity will vary depending on the offer price and bond rating at the point of selling. 

Generally, you are selling your odd lot bond to FSMOne, and the bond dealer will resale to other investors by increasing the “Ask Volume” in the bond express platform.

You may refer to “Bid Volume” in the bond express platform to identify how much we are willing to buy back from investors.