Bonds and NCDs with Nico Wealth
Key facts
- A bond or NCD pays a fixed coupon and returns principal at maturity, if the issuer performs.
- Government bonds carry very low credit risk; corporate bonds and NCDs carry the issuer's credit risk.
- Individual bonds can be harder to sell before maturity than a debt fund.
- We help you weigh the issuer, the risk, and the alternatives, honestly.
Lending for a fixed return
Bonds and NCDs are fixed-income instruments: you lend to a government or company, which pays a fixed coupon and returns your principal at maturity. The appeal is predictable cash flow. The risk is the issuer, whether it will pay as promised.
Government bonds carry very low credit risk. Corporate bonds and NCDs carry the issuer's credit risk, and a higher coupon usually signals higher risk, not a better deal.
How we help
We will not pitch an NCD on its coupon. What we do is help you understand the instrument, assess the issuer and its credit rating, weigh the liquidity, since individual bonds can be harder to sell before maturity, and compare it honestly with a debt fund, which spreads credit risk across many holdings.
Straight talk
A bond or NCD suits someone who wants a known cash flow and is willing to assess and take a single issuer's risk. Where a diversified debt fund would serve you better, we will say so. You pay us no direct fee, and any commission arrangement on a fixed-income product is disclosed.
If you are weighing a bond or NCD, talk to us, and we will be honest about whether it fits.
Frequently asked questions
What is the difference between a bond and an NCD?
Both are fixed-income instruments paying a coupon and repaying principal at maturity. Government bonds carry very low credit risk. An NCD, a Non-Convertible Debenture, is issued by a company, so it carries that company's credit risk. The higher the coupon, usually the higher the risk.
How does Nico Wealth help with bonds and NCDs?
We explain how a bond or NCD works, walk through the issuer and its credit risk, discuss liquidity, and compare it honestly with a debt fund. We will not sell you an NCD on its coupon alone, and we will say when a debt fund might suit you better.
Is there a fee?
No direct fee to you. Where we facilitate a fixed-income product, any commission arrangement is disclosed. The priority is that you understand the risk, not that you buy.
The information on this website is general and educational. It is not financial, tax, or legal advice, and not a recommendation for your situation. We try to keep it accurate and up to date, but it may contain errors or become outdated. Please verify important details from official sources, and consider your own circumstances, before acting.
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