Analysing the Bond Market
How do I analyse the bond market?Investing and trading in retail bonds is similar, yet different to the stock market. Just like choosing a stock counter, the process of deciding which bond to buy requires some analysis. The BPAM data provides you with the key building blocks to begin your analysis....
22 Jun 2023
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VALUATION OF BONDS AND SUKUK - BOND RISKS (PT2)
The common misconception is that Bonds and Sukuk have little risk. THIS IS NOT TRUE. Just like any other financial instruments, they have certain inherent risks but these can be reduced by diversification across other asset classes.
Credit Risk Also known as ‘issuer risk’ or ‘default risk’. Th...
22 Jun 2023
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The Relationship of Bond Risk and Return
The normal relationship is that an investor who takes higher risk demands a higher return.
For bonds, this can be summarised as:
Higher Risk = Higher Return / Yield
Lower Risk = Lower Return /Yield
From this, we can see that risk-free bonds such as those issued or guaranteed by the Governmen...
22 Jun 2023
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