Steady Wealth Growth Wise choice for asset allocation
Hedge, inflation protected, fixed cashflow income
What is bond?
Bond is basically a standard written acknowledgement of debt. Subject to different debtor, bond can be classified into government bond, urban construction investment bond, corporate bond and asset-backed securities, and so on. In the absence of default, bond holder would be able to receive interest payment as promised, and collect the principle at maturity.
US government bond is the government debt issued by US Treasury, guaranted by US national credit, and is considered an ultra-low risk financial product.
Advantages of investing in US bond
Fixed income
US bond provides stable annual
Interest payment, ensuring creditors
Receive predictable return
High liquidity
the largest bond market in the
world, convenient buy&sell, fast cashflow
Top safety
guaranted by US government, low default risk,
A safe asset recognized globally
High return potential
benefited by FED's monetary policy,
the highest return surpass 5.0%. *
Hedging
as safe haven, US bond contributes to a risk-balanced portfolio
Exchange rate return
strong US dollar provides extra opportunity to gain from
Exchange rate for non-USD investors
Investing US bond in uSMART
Low entrance barrier
0 Means Test
1000 USD entrance
Various forms
different forms
Convenient investent
0 lock-up period
0 revenue cap
Safety ensured
high security and relatively
High risk premium
How to trade US Treasury bonds on uSMART
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Open uSMART app
Click "Wealth+" in the bottom section of the app
Select "Bond trading"
Choose the US bonds you like, then click "buy"
Take about 2 minutes to finish the Risk Evaluation Test and show your acknowledgement to the risk of US bonds
FAQs
How much is the interest payment and how to receive payment?
Most mid and long term US bonds pay interest semiannually. Short term US bonds usually don't pay interest, instead, the price of bond is discounted from par value when purchased. Amount of interest is based on bond's par value and the listed interest rate. For example, a US bond with $10,000 par value and 2.5% interest rate would pay $250 as interest annually, and $125semiannually.
How is the security of US bond? Is the principal and return guaranted?
US bond is recognized worldwide as one of the safest investment tool. Backed by the credit of US government, historically, US bond has never experienced default. Therefore, many investors view it as the base of "risk-free".
Who is suitable to investing in US bond?
These types of Investors are most suitable to investing in US bond:
Investors who seek for stability: for investors who want to avoid severe market volatility, US bond can be used as a relatively stable investment tool.
Investors who are conservative: perfer low risk strategy and ensure the safety of asset.
Investors who take diversified portfolio: to balance the risk in porfolio, it is common to management part of asset to US bond.
Investors who are retiree or near retirement: these investors would value the security of principal and stable return.
Investors who take hedging strategy: at economic downturn or market with high uncertainty, US bond can be used to hedge other high risk assets.
Currency risk manager: for some non-US investors,buying US bond could be a strategy to hedge the depreciation of currency Short term asset management: for institutions and investors that need to hold large amount of cash, US bond is a safe and interest bearing choice of investment.
To summarize with, any investor who is seeking for relatively stable return and lower overall investment risk, could consider investing in US bond.
What are the rules of trading US bond?
uSMART supports "T+0" trading of US bond, which means the buy and sell could take place within the day. The settlement day is "T+1", which means the money would be received at the next trading day after selling the bond. When the bond reaches maturity, the receive of principal would also follow the "T+1" rule.
Do I have to hold the bond until maturity?
No, you can hold it to maturity, or sell earlier within any trading period.
CS Hotline: +852 3018 4526
Trading days: 24 hours | Non-trading days: 9:00-18:00
Email: cs@usmart.hk
WhatsApp: +852 5989 2641
