Reader Mike wanted to know:
Where and how do I get corporate bonds? Are they available in small amounts e.g. P5000 like RTBs (retail treasury bonds)?
There’s a great website called AsianBonds Online that gives at-a-glance information on investing in bonds.
If you go to that website, you will find that bonds in the Philippines are either Long-Term Commercial Papers (LTCPs) or private corporate bonds. You’ll even find a list of private corporate bond issuers.
For issues of four years and over, the minimum amount of bid is P20,000. The minimum amount goes up as the tenor becomes longer to as much as P100,000.
Bonds are bought through financial institutions – mostly banks. The documentary requirements are quite stringent. Ask branch managers of your bank or their Treasury departments.
There’s another way to buy corporate bonds: through bond funds whether UITFs or mutual funds. This is the newbie’s preferred entry into the local bond market. Fewer headaches, lesser need to monitor the market.
Hope this helps. Happy investing!
September 22nd, 2007 at 6:12 am
[...] Orli Sharaby wrote an interesting post today onHere’s a quick excerptWhere and how do I get corporate bonds? Are they available in small amounts eg P5000 like RTBs (retail treasury bonds)? There’sa great website called AsianBonds Online that gives at-a-glance information on investing in bonds. (more…) [...]