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Bonds Investment - Citi UK

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Bonds

Investment bonds - Trade bonds across major world markets

Our bonds at a glance:

  •   Invest in bonds in more than 21 markets around the globe
  •   Available in a variety of currencies, coupon types and maturity ranges
  •   Extensive range of investment grade, government and emerging market bonds
  •   Trade on your own via Citi Online or through your Relationship Manager

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  • Overview
  • Bonds at Citi
  • Management and fees

What are bonds?

Bonds are Debt Securities that are publicly traded evidence of a promise to pay back an amount to the holder of the security. Bonds are issued by companies, governments, government agencies and municipalities.

By investing in bonds, you are effectively lending money to a company or institution and they will repay that debt (subject to credit risk of the issuer). Sometimes you specify a fixed rate of interest (known as the coupon) to be repaid at an agreed time in addition to the original sum (known as the principal). There is a wide range of investment bonds available and some come with variable rates of interest and no maturity date. You can also trade bonds on exchanges or over the counter (OTC) with other brokers.

Why would you consider Bonds?

Investment bonds could be considered by people who:

  • want to save over the medium to long-term
  • are looking for capital growth
  • won't need access over the short term to the cash they have invested in the bond

Bonds are rated on the basis of how likely the issuer is to default, so selecting which rating level of bond to invest will depend on your attitude to risk.

  • Government bonds (known as gilts) are lower risk and therefore pay a low level of interest (coupon).
  • Emerging market bonds are also government bonds, but they are classed as higher risk because they are issued by governments in countries that are less developed.
  • Investment grade bonds are those that are rated highly by credit rating agencies and are very often large companies with a low risk of defaulting on their debt obligations. They usually pay a higher level of interest than government bonds as, although it is unlikely the company will default, the level of risk is still greater than with a government bond.
  • High yield bonds (also called junk bonds) are those with a lower credit rating than investment-grade bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds.

Benefits and risks

  • Diversification and investment choice - Fixed Income securities are available in a number of currencies, maturities and cover various industries.
  • Cash flow predictability - Fixed Income securities represent ownership of a debt security. The debt issuer pays a coupon payment on a periodic basis and returns the principal to the investor on maturity.
  • Principal returned at maturity (subject to credit risk of the issuer)
  • Your money will be tied up for an agreed amount of time.
  • If the market turns or interest rates rise, you won’t enjoy potentially high returns compared to if you had invested your money in another type of savings or investment product. Past performance is not indicative of future results, investments can go down as well as up.
  • There is a risk that the company or institution will collapse and, since you are effectively a creditor, you may not get your money back.

Choice of bonds at Citi

  • Types of bond

    You can buy and sell bonds from our extensive range of investment grade, government and emerging market bonds (more than 21 emerging market countries covered in Europe and the Middle East, Asia and Latin America).

    You can access the following types of bonds:

    Zero Coupon bonds
    Fixed Coupon bonds
    Floating rate bonds / notes
    Government bonds (US bonds, UK gilt and European bonds)
    Corporate (high grade)
    Emerging market (Eurobonds and Yankees by sovereigns and corporate)

  • Currencies

    Bonds are available in a wide range of currencies including USD, EUR, GBP, AUD, CAD and NZD helping to diversify your portfolio.

  • Onshore & offshore

    Citi can help you diversify your wealth on a global scale and take advantage of both onshore and offshore bonds, giving you access to an even wider range of markets and products. We help make international wealth management easy for you by opening up investment opportunities in a way that is clear and straightforward.

    Depending on your individual circumstances, offshore investments may bring certain tax advantages which is particularly useful if you are an expatriate living and working in the UK.

    Please note Citi does not provide tax advice and investors should seek advice from a tax adviser.

  • Selection process

    How we select bonds at Citi

    Citi select bonds for our advisory service based on the individual needs of our clients. We choose bonds that will fit with your investment strategy and which have a minimum of two rating agencies (such as S & P, Moody's and Fitch). We also consider the liquidity, time frames and the amount of risk you're willing you take. With our help and advice you can feel fully involved in your investment strategy.

Your dedicated Relationship Manager

Your dedicated Relationship Manager:

  • Can give you investment advice
  • Will be available to arrange investment transactions on your behalf
  • Can give you general advice and guidance on trading best practice
  • Will give guidance on forming a balanced investment portfolio
Through Citi Online

Through Citi Online:

  • Open your brokerage account
  • View and track your transaction status
  • Search for equities and bonds from around the world
  • Trade online, place, edit, buy and sell orders, including limit orders
  • Monitor your investment holding online and on mobile 24/7
  • Receive monthly combined banking & investment statements

Bond eligibility and fees

Eligibility

Bonds are available to all clients who have the appropriate knowledge and experience.

Minimum trading amount: Minimum investment transaction size via Citi Online is subject to minimum tradable lots. Minimum transaction size via other channels is US$10,000 (or the currency equivalent).

Fees

Transaction fees

The commission rate when trading fixed income securities (bonds) via Citi Online will be confirmed prior to completion of the trade, and it can be up to 3%.

Please refer to your Relationship Manager or the Key Facts Document for further details.

Global Custody fee

This applies for all investment products. The standard rate is 0.5% p.a. of all investments held by the client with Citi, charged on monthly basis.

Brokerage charges and third party fees

These charges will vary based on the nature of the security and the market in which it is traded and settled. Your Relationship Manager will inform you of the charges at the time of trade, or, if trading via Citi Online, these charges will be displayed before confirming your order. Fees and taxes levied by the exchange or the relevant regulatory authorities may be passed on to you.

Why Wealth Manage at Citi?

  • As part of a model portfolio Receive guidance to meet your financial goals

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  • Speak to a dedicated Relationship Manager Seek advice and buy individual funds

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  • Easy access to your wealth Invest at your convenience through our online platform

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  • From an international selection Choose funds from 34 global markets

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  • As offshore investments Diversify your wealth on a global scale

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Take the first steps to your wealth management planning with Citi

Speak to a Relationship Manager
0207 500 1992

Already with Citi? Contact your relationship manager or view product availability on Citi Online

Why choose Citi?

A relationship - not just a bank account

A dedicated Relationship Manager giving you access to our internal team of product experts and all our benefits

Access to exclusive Citi products

A range of current and investment products available both on shore and offshore, in the currency of your choice
Multi-currency accounts
Our investment products

Global services for a global lifestyle

Our team is here to support you getting started in UK or with International travel and relocation
Moving to and from the UK
Travelling overseas

Offshore investments

We offer a diverse range of banking and investment services, including for those who want access to offshore investments

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Just moved to the UK?

We can save you time money and hassle. If you are a foreign national in the UK, Citi's International Banking Service can help you manage your money, home and away.

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Important information
Investment products are not insured by any governmental agencies, are not bank deposits, and are neither obligations of, nor guaranteed by, Citigroup, or any of its affiliates, unless otherwise stated.


Investment products are subject to investment risks, including possible loss of some or all of the principal amount invested. Past performance is not indicative of future results, investments can go down as well as up.