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Bond trading

Overview of bond trading

 

  • What are bonds:
    • Bonds are securities that confirm the debt obligations of the issuing organization to the bond owner. When buying a bond, the investor lends a capital amount to the issuing organization (corresponding to the face value of the bond) and receives periodic interest at a certain interest rate regardless of the company’s financial performance.
    • The bond issuer can be a company (corporate bond) or a government organization such as: the Government (public bonds or government bonds), the State Treasury (treasury bonds).
    • Each bonds have a specified maturity and the bond issuer must repay the original loan upon expiration.
  • Bonds’trm:
    • Bondholder: is the bond owner (the person who lends money to the bond issuer)
    • Par value: is the value recorded on the bond (corresponding to the principal amount)
    • Bond price: is the price for trading, buying and selling bonds on the market at a specified time.
    • Maturity date: is the date on which the issuer must redeem the bond.
    • Bond term/Maturity: is the time calculated from the time the bond is issued until maturity
    • Bond interest rate: is the interest rate the issuer commits to repay to investors. Bond interest rates can be floating or fixed, paid according to the term as clearly specified in the bond prospectus.
  • Types of bonds:
    • Listed bonds: are bonds that are registered and centrally deposited at the Securities Depository Center (VSD) and traded on a centralized stock exchange such as HOSE or HNX. Bond transactions will comply with the regulations of the listed Stock Exchange.
    • OTC bonds: are bonds traded on the decentralized market and bond transactions are conducted based on agreements between investors.

 

Bond trading instructions

 

  • Open an account
  • NVS’s regulations and instructions on bond trading
  • Instructions for deposit/withdrawal
  • Conduct transaction

 

Bond Price Board

 

Fees

 

  • Price list of securities services at Navibank Securities Joint Stock Company (applied from December 1, 2023)

See more detail here.