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Types of HSBC Bonds
Bonds from HSBC can be categorised by:
- Types of issuers - corporate bonds, supranational bonds and government/quasi-government bonds
- Coupon - fixed rate bonds, floating rate bonds and zero-coupon bonds
- Credit quality - investment grade bonds
- Currency - HKD, USD, RMB, AUD, NZD, GBP, and EUR
HSBC offers you a wide selection of investment grade bonds denominated in major currencies and with tenors ranging from 1 to 30 years.
Moody's and S&P Credit Ratings
Moody's and S&P are the best known international credit rating agencies. Ratings are assigned based on the bond issuer's financial strength and past record of debt repayment. In general, the higher the credit rating, the lower the risk of default and the lower the interest offered.
| Moody's | S&P | Rating |
|---|---|---|
| Aaa | AAA | Highest quality |
| Aa | AA | High quality |
| A | A | Upper medium quality |
| Baa | BBB | Medium quality |
| Ba | BB | Somewhat speculative |
| B | B | Low grade, speculative |
| Caa | CCC | Low grade, highly speculative |
| Ca | CC | Low grade, most speculative |
| C | C | Default |
Service Charges
| Service | Charges | Minimum charges |
|---|---|---|
| Buy/Sell bonds** | Waived | -- |
| Interest Collection | Waived | -- |
| Redemption at maturity | Waived | -- |
| Safe custody*** | 0.05% on nominal value per annum(maximum charge: HKD $2,500 half-yearly) | HKD 150 half-yearly |
| Transfer (into or out of HSBC) |
Through Central Money Market Unit (CMU): HKD500 per note/bond per transfer Through Euroclear/other overseas clearing houses/bank: HKD1,000 per note/bond per transfer |
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**The minimum investment amount starts from HKD50,000, depending on the type of bonds and the respective market prices at the point of trading.
***For HSBC Premier, HSBC Advance and SmartVantage customers, the safe custody fee is due and payable in June and December every year on a day determined by the Bank from time to time. For general securities account customers, this fee is due and payable in March and September every year on a day determined by the Bank from time to time. This fee is calculated on an accumulative basis based on the average month-end nominal value of the bonds over six months and a minimum charge of HKD150 applies every six months. This fee is also payable if the account is closed between those collection dates.
Disclaimer:
This information is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. HSBC has based this list on information obtained from sources it believes to be reliable but which it has not independently verified. HSBC makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. The information is subject to change without notice.
