24-28, 60439 Frankfurt am Main) in Germany in accordance with Section 32 of the German Banking Act (KWG). Credit rating agencies such as Moody’s Investors Service and Standard & Poor’s provide independent analysis of corporate bond issuers, grading each issuer according to its creditworthiness. With a vast array of maturities, yields and credit quality available, investing in corporate bonds has the potential to provide higher yields than government bonds … Qualifying corporate bond (QCB) Related Content Debt securities that are exempt from tax on chargeable gains so that their disposal does not give rise to any chargeable gain or allowable loss for the … W2765338E) and PIMCO Europe GmbH Irish Branch  (Company No. “Rising star” refers to a company whose bond rating has been increased by a credit rating agency due to an improvement in the credit quality of the issuer. 909462) are authorised and regulated by the German Federal Financial Supervisory Authority (BaFin) (Marie- Curie-Str. Coronavirus - we're here to help What China’s 14th Five-Year Plan Means for Investors, Confronting Lower Returns and Higher Volatility, Investment Opportunities Over the Secular Horizon, https://www.pimco.co.uk/en-gb/7hszv5yrkqyl, 10-Year Returns of U.S. View list of online tradable bonds and gilts, More information about Vantage and how to open an account. * Assets in thousands of U.S. investments are right for you, please request advice, for example from our, National Grid Electricity Transmission plc, Retail Charity Bonds (Greensleeves Homes Trust), Retail Charity Bonds (Hightown & Praetorian), Retail Charity Bonds plc (Golden Lane Housing), Register for online There is no guarantee that the principal amount of the investment will be preserved, or that a certain return will be realized; the investment could suffer a loss. If you have any doubts as to the suitability of an investment, please contact us for advice. Find information on government bonds yields and interest rates in the United Kingdom. Bonds not covered by our online dealing service can be dealt from £20 per deal over the telephone (1% of the value of the trade, subject to a minimum of £20 and a maximum of £50) during market hours (Mon-Fri, 8:00am-4.30pm). “Fallen angel” is a term that describes an investment-grade company that has fallen on hard times and has subsequently had its debt downgraded to speculative grade. They’re a far, far safer investment, and you needn’t worry about diversification, since gilts are effectively risk-free. 24-24a, 80335 Munich, Germany), PIMCO Europe GmbH Italian Branch (Company No. While the former will mature and pay you your money back, ETF investments last indefinitely. 192083, Seidlstr. Since 1981, bonds with the highest credit … The corporate sector … Select group: The price of a corporate bond is influenced by several factors, including the maturity, the credit rating of the company issuing the bond and the general level of interest rates. Speculative-grade bonds are issued by companies perceived to have a lower level of credit quality compared to more highly rated, investment-grade, companies. Valuations of assets will fluctuate based upon prices of securities and values of derivative transactions in the portfolio, market conditions, interest rates and credit risk, among others. 07533910969) are authorised and regulated by the Financial Conduct Authority (25 The North Colonnade, Canary Wharf, London E14 5HS) in the U.K. PIMCO provides services only to qualified institutions and investors. This communication is provided for general information only without taking into account the objectives, financial situation or needs of any particular investors. Investments in foreign currency denominated assets will be affected by foreign exchange rates. From how to access your account online, scam awareness, your Find out more about dealing charges. agencies. The services provided by PIMCO Europe Ltd are not available to individual investors, who should not rely on this communication but contact their financial adviser. Expensive valuations and elevated volatility are likely to create challenges, but an active, flexible focus on relative value and alpha generation may help contribute to overall returns over the next three to five years. Past performance is not a guarantee or a reliable indicator of future results. Invests in high credit quality debt securities in AAA-rated and equivalent … Corporate bonds are used as a way of raising money for businesses - it's essentially a certificate of debt issued by major companies. Know of any other must-read data sources for UK corporate bond … 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 the current low interest rate environment increases this risk. Spreads on these credit default swap indexes are indicators of broader credit market conditions. Alan Cubbon suggests they should not overlook the far more diverse dollar … This is known as the redemption date. Corporate bonds can offer a range of potential benefits including: Similar to government bonds, corporate bonds are exposed to interest rate risk. | PIMCO Australia Pty Ltd ABN 54 084 280 508, AFSL 246862 (PIMCO Australia) offers products and services to both wholesale and retail clients as defined in the Corporations Act 2001 (limited to general financial product advice in the case of retail clients). 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