Atlantic ManagementYour Guide to the Eurobond Market

Ten questions to ask before buying a bond

A practical checklist for anyone being offered a bond or bond-like product.

  1. Is your firm authorised by the regulator, and can I see that on the public register?
  2. Who exactly is the issuer, and what is the bond's ISIN?
  3. Where does the bond rank – senior, subordinated, secured?
  4. What currency is it in, and what happens if that currency falls against mine?
  5. When does it mature, and can the issuer call it early?
  6. What is the yield to maturity (or to worst) at the price you are quoting?
  7. What are all the costs: commission, mark-up, custody and exchange fees?
  8. Where will the bond be held, and is it segregated from your own assets?
  9. How easily could I sell it before maturity?
  10. Can I see the prospectus or final terms and the key information document?

If a firm cannot or will not answer these questions clearly, treat that as a warning sign.

General information only, not investment advice.

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