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

Non-complex callable bonds include a make-whole clause, which requires the issuer to pay the investor a lump sum equal to the net present value of all remaining future interest payments.

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

Many bonds pay a fixed amount of interest (called a coupon) at regular intervals until they mature, which can provide a predictable income stream. However, these payments are not guaranteed.

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 have a low correlation with equities. This helps diversify your portfolio. During economic slowdowns, when equities 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.