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Online Share Trading

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In need of education in Bonds

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dreamgirl
Occasional Contributor
In the home page I see JoziBonds IPO, I don't know whether I should be interested or not, and if I were interested which year option I should select. Are bonds a good investment? If so what things should I look out for? Recommended reading? In my Economics 101, they said there is a relatioship between bond price & interest rates.
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3 REPLIES 3
saash
Super Contributor
At the current lending rate the interest on JoziBonds is over 10%pa depending of the option you choose. You can also draw down your interest quarterly, or annually. It depends on your investment profile and your financial needs if this is the right thing for you, and the term you'd want to commit your funds for. JoziBonds are tradable through this platform if you need to get your money back, but expect that there will not be high trading volumes, so it may take a few days if you decide you want to sell.
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dreamgirl
Occasional Contributor
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SimonPB
Valued Contributor
there will be a market maker - so buying/selling will be easy. Interest aret will be reset every quarter and JIBAR is currently 10.129%. Note interest has a tax implication.

In short they are a low risk investemnt (risk is Jozi goes bust) with a decent(ish) return.
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