Kingsford Securities PCL
Fixed Income Investment Service
Kingsford Securities Public Company Limited is authorized to be a selling agent for Fixed Income products. Our team has a long experience in this industry and they provide you in depth information about the products and we offer the below services to our clients:
Selling agent of debentures in primary market
Brokerage service for bill of exchange between issuers and potential investors
Brokerage service for Fixed Income products in secondary market
Any interested investors in Fixed Income products should inform us about their risk appetite, investment value and length of investment in order for us to provide you the most suitable advice.
Fixed income security is a debt instrument whereas the investors are the creditor (which is different from investment in equity whereas the investors are the owners).
Fixed incomes are divided into different types:
Debentures issued by private company (maturity is longer than 1 year)
Bill of Exchange issued by private company (maturity is no longer than 270 days)
Government Bond in which the issuer is public sector (maturity is longer than 1 year)
Treasury Bill in which the issuer is Ministry of Finance (maturity is no longer than 1 year)
3 Simple steps to invest:
1st Step: Account Opening
Stated in SEC’s regulation, investors are required to open an account with brokerage companies prior to making any type of transactions. If you already have an account with us, then skip to 2nd step.
2nd Step: Contact our Investment Consultant or Fixed Income department. This is to inform us your objectives of investment, receiving the best advice from us and confirmation of investment transaction via recorded phone calls.
3rd Step: Cash settlement and delivery of the products as in the method specified in account opening form.
Cash Settlement – ATS or transfer fund
Product Delivery – Certificate or transfer the instrument to your port folio (scriptless)
Return from Investment in Fixed income products:
Fixed income products are low-risk investment products with constant return. The returns come in 3 types:
Coupon – which is specified since the issuing date. Currently the fixed income products offer about 2 – 4 times of payment per year.
Capital gain – Instead of holding the security until maturity date, investors are also able to sell the security to make capital gain when the price moves higher. Fixed income prices usually move in opposite direction as interest rate (lower interest rate = higher price of fixed income, vice versa)
Discount – Fixed income products which have no interest such as short-term Bill of Exchange, investors will be granted discount price right away when buying the security. For example, investor bought fixed income security at bt95 and will be receiving the principal back in 6 month time at bt100, the difference of bt5 is considered as discount to the investors