Examples of Bonds include:

Fixed Rate Bonds

These bonds pay the same amount of interest for their entire tenure, providing you with greater investment certainty.

Floating Rate Bonds

These bonds have a variable interest rate that are typically tied to market interest rates. When the reference market interest rate increases, the interest return may increase accordingly and vice versa.

Zero Coupon Bonds

A zero coupon bond makes no periodic interest payment, but instead it is usually offered at a discount from its face value. The return will be reflected from the gradual appreciation of the bond which is redeemed at face value on maturity date.

Perpetual Bonds

Perpetual bonds do not have a fixed maturity date, which means that theoretically, investors may never be repaid the principal. However, investors can expect to receive a steady stream of interest income indefinitely. The bond issuer may also recall the bond at any time due to factors like the current interest rate environment and refinancing costs.

Inflation-linked Bonds

Inflation-linked bonds may protect investors against the effects of inflation by adjusting the interest and principal payments according to a specified indicator of inflation, such as the Consumer Price Index (CPI). However, investors should note that inflation-linked bonds may underperform during periods of deflation.

Asset-backed Bonds

Asset-backed bonds' principal and interest payments are tied to cash flows from underlying assets, typically in the form of loans issued to individuals. Examples of asset-backed bonds include collateralized debt obligations (CDOs), collateralized mortgage obligations (CMOs), and mortgage-backed securities (MBSs).

Municipal Bonds

Municipal bonds are issued by a local government, city, state, or county to raise capital for public projects like building schools, parks, highways, and other infrastructure.

Claim Elimination Securities (CES)

Claim Elimination Securities (CES) are bonds with governing terms that explicitly state the elimination or substantial diminution of the holders' rights, such as the full or partial write-down of the bond's principal value or conversion into equity, upon the occurrence of a trigger event. Trigger events may include the decline of the issuer's Core Equity Tier 1 ratio beyond a specified level and a declaration of the issuer's non-viability by the applicable regulator.

Islamic Securities or Sukuk

Islamic securities, also known as Sukuk, are Shariah-compliant financial instruments that grant holders ownership to a portfolio of assets. Unlike traditional bonds, Islamic securities do not generate interest payments as it is prohibited by Islamic law; instead, they may provide periodic payments to holders based on the profit generated by the portfolio of assets.