Bonds with credit ratings above Baa3 / BBB- (inclusive) are better rated bonds and are suitable for stable investors.
|Securities / Coupon / Maturity|
|SINOPE 3.25 04/28/25||USD|
|Huarong Asset Management|
|HRAM 4.25 11/07/27||USD|
Bondholders are exposed to a variety of risks, including but not limited to:
- Rating risk - bonds are subject to the risk of the issuer defaulting on its obligations. It should also be noted that credit ratings assigned by credit rating agencies do not guarantee the creditworthiness of the issuer;
- Liquidity risk - some bonds may not have active secondary markets and it would be difficult or impossible for investors to sell the bond before its maturity;
- Interest rate risk – Soverign investment bonds are more susceptible to fluctuations in interest rates and generally prices of bonds will fall when interest rates rise.
- Repurchase risk: When bond issuers exercise repurchase rights before the bonds mature, investors face reinvestment risks.