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Non-complex bonds should repay principal at the maturity date (if the issuer does not default), unlike stocks which depend on the share price fluctuation.

Non-complex bonds also have higher seniority than stocks, as bondholders must be fully repaid before shareholders start receiving any money during a liquidation or bankruptcy process.

Most of the bonds (especially fixed-income bonds that are the dominant group) have a fixed schedule and amount of payments until their maturity.

If the issuer is unable to meet its obligations or defaults, you may not receive some or all of the expected payments. Refer to our Risk Disclosure for more details.

Bonds generally have a low correlation with stocks. This can help to diversify your portfolio. During economic slowdowns, when stocks underperform, bonds often outperform due to lower interest rates typically triggered by slow GDP growth.

For more information on the risks associated with financial instrument transactions, consult our Risk Disclosure.