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Corporate & Convertible Bonds
Corporate Bonds are, in its crudest form, loans made to companies from investors. The bonds are issued by the companies aiming to raise capital to invest in their business. They have a nominal value which will be paid back out to the investor at the stated later date (this is known as the Redemption date). They also tend to pay a fixed rate of interest each year - although this can vary depending on the bond. The bonds are bought and sold on the stock market and their price is constantly rising or falling.
Convertible Bonds give the holder the option to exchange the bond for a predetermined number of shares in the issuing company. When the bonds are first issued, they are very similar to a Corporate bond but generally with a lower interest rate. The benefit comes from the potential for the underlying price in the stock to rise. If the underlying stock performs poorly, there maybe no benefit in converting into ordinary shares and the investor can remain holding onto the bond.
With Halifax Share Dealing, both Corporate Bond and Convertible bonds can be held in our Share Dealing account, our Self Select Stocks & Shares ISA and our SIPP.
| Five Key Benefits of Trading Bonds with Halifax Share Dealing |
| 1. Convertible bonds are usually issued offering a higher yield than obtainable on the shares into which the bonds convert |
| 2. On the whole, Bonds tend to be safer than ordinary or common shares for the investor |
| 3. Bonds are designed so investors can benefit from a more regular income |
| 4. Invest in a wide variety of bonds in many different sectors and structures |
| 5. If you need to sell a bond before maturity, you can do so easily because of the size and popularity of the market. |
Opening Your Account
Your Halifax Share Dealing Account can be opened with a £100 initial deposit. This can then be invested into any eligible investment of your choice.
Transfer from your current provider- Find out more about how to transfer from your existing provider to a Halifax Share Dealing!
Next Steps
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Apply online for an account - it only takes a few minutes |
Telephone our UK based call centre on 08457 22 55 25* to find out more (lines are open 8am - 9.15pm Monday to Friday and 9am -1pm Saturday excluding English Bank Holidays.)
Please remember the value of your investments and the income from them can go down as well as up. You may not get back the full amount you have invested. If you're in any doubt about the suitability of any of our products, or whether to buy or sell shares, you should consult an appropriate Financial Adviser.
Click here to view our Regulatory Information
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