What is a bond?
A bond is a fixed income instrument that represents a loan made by an investor to a borrower. It can also be used as a method for financial institutions to build a fund from which they deploy short term financing to developers who require money for certain projects. This takes the form of mezzanine finance, developer finance or bridging loans.
A bond is a financial product regulated by the Central Bank, meaning increased security down to the due diligence and guarantees in place. Typically, there are 4 regulated bodies that need to approve a developer before the request for funds is approved, strengthening the process. Following an independent RICS (Royal Institution of Chartered Surveyors) valuation, first legal charge on assets is then obtained through a Directors Guarantee, Cross Company Guarantee and/or a majority share of the company.
Due to a bond being a fixed income instrument, invested funds are usually tied into the structure until the bond matures. Returns are normally paid on a quarterly basis.INVESTMENT CALULATORGET IN TOUCH
An Introduction To Bonds.
Bonds are a traditional form of investment, generating a secure fixed income. The multiple securities and regulations in place, make it an ideal option for those seeking a reliable investment strategy.DOWNLOAD GUIDE