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Overview of bond trading
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- A bond is a type of security that confirms the debt obligation of the issuing organization to pay the bondholder. When buying a bond, the investor lends the issuing organization a certain amount of capital (corresponding to the face value of the bond) and receives periodic interest at a certain interest rate regardless of the company’s business results.
- The bond issuer can be a business (corporate bond) or a government organization such as: the Government (government bonds or government bonds), the State Treasury (treasury bonds).
- The bond has a specific time period and the bond issuing company must repay the initial loan when it matures.
- Some terms related to bonds:
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- Bondholder: is the bond owner (the person who lends money to the bond issuer).
- Bond face value: is the value recorded on the bond (corresponding to the principal).
- Bond price: is the transaction price, buying and selling of bonds on the market at a certain time.
- Maturity date: is the date on which the issuer must buy back the bond.
- Bond term: 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.
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- Listed bonds: are bonds registered and centrally deposited at the Vietnam Securities Depository (VSD) and traded on centralized stock exchanges such as HOSE or HNX. Bond transactions will comply with the regulations of the listed Stock Exchange.
- OTC bonds: are bonds traded on the over-the-counter market and bond transactions are conducted based on agreements between investors.
How to trade
- Open an account
- NVS’s regulations and instructions on bond trading
- Instructions for depositing/withdrawing money
- Make a transaction
Fees
- Price list of securities services at Navibank Securities Joint Stock Company (effective from December 1, 2023)
- See details here.
