How It Works

Introducing Bond Lite

Bond Lite is the game changer in the financial investments instruments fraternity; our Bonds have similar characteristics with common Bonds e.g. Corporate and Governmental Bonds the major difference is on Coupon Rate and Maturity period, on Maturity period at Bond Lite interest payment or coupons are no longer paid quarterly, twice yearly or annually our interest payments are made between 9 to 13 days Our Coupons rates are very competitive and even though Issue Prices differs depending on the Bond holder at Bond Lite Issue Prices are very much affordable

What is a Bond

Bonds are commonly referred to as fixed-income securities and are one of the main asset classes that individual investors are usually familiar with, along with stocks (equities) and cash equivalents. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer.

Characteristics of Bonds

Face value (par value) is the money amount the bond will be worth at maturity; it is also the reference amount the bond issuer uses when calculating interest payments. For example, say an investor purchases a bond at a premium of R1,090, and another investor buys the same bond later when it is trading at a discount for R980. When the bond matures, both investors will receive the R1,000 face value of the bond.

The coupon rate is the rate of interest the bond issuer will pay on the face value of the bond, expressed as a percentage.Payments can be made in any interval, but the standard is semiannual payments.

The maturity date is the date on which the bond will mature and the bond issuer will pay the bondholder the face value of the bond.

The issue price is the price at which the bond issuer originally sells the bonds. In many cases, bonds are issued at par

In return for buying the bonds, the investor – or bondholder– receives periodic interest payments known as coupons. The coupon payments, which may be made quarterly, twice yearly or annually, are expected to provide regular, predictable income to the investor.

How to get Bonds

Step 1

Apply for bonds by entering the amount you want to spend on Bonds, then you will be allocated Bonds matching your application or you can simply pick out from already issued out Bonds, that’s have the Face value, Coupon Rate, Issue Price and Maturity Date that suites you

Step 2

Pay the Bond Holder the amount indicated as Issue Price on the Bond you are acquiring. After paying the Bond Holder is notified about your payment and the moment he/she approves your payment you now become the new Bond Holder

Step 3

Now wait for the maturity date, upon maturity you can issue out the Bond at an issue price indicated as Face value or you can hold back you Bond and get a new Face value and new Coupon Rate and new Maturity date

Getting Bonds

Let’s say you want to get this Bond, you will pay the Issue Price of R1268.00 and the Maturity date will be 18 Jan 2024 at a Coupon Rate of 26.8% and the Face Value is R1607.82 and the Bond Identification number is BIC150261, to get this Bond you pay the issue price of R1268.00 to the Bond Holder (BL141057002) on 18 Jan 2024 you will be getting the Face value as the issue price and the new Face value is determined by your Coupon Rate You can increase your Coupon Rate by inviting more Affiliates

Maturity and Face Value

After your payment has been approved you now become the Bond Holder and the Bond will have a new Bond Identification number in this case the number is BIC150268 and the Maturity date is now 17 Jan and the Coupon Rate is 35.2% you can reduce the maturity period by inviting more affiliates The issue price is R1268.00 that’s the price you acquired the Bond at then upon maturity you will be issuing out the Bond at the Face Value

Issue Out

Now you can bargain with your Bond either to collect the Issue Price which is R1714.34, take note when you acquired the Bond the Face value was at R1607.82 but because of your Coupon Rate you now getting R1714.34 So now you can Issue out or Hold Back your Bond and you will be getting R2317.79 on 26 Jan at a Coupon Rate of 35.2%

DISCLOSURES

All investments contain risk and may lose value. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and low interest rate environments increase this risk. Reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Duration is, generally, a more accurate measure for small changes in interest rates. For larger interest rate changes, other factors may also impact a bond’s price. PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2022, PIMCO. CMR2022-0414-2122506