SIMON BROWN: Look beyond the face value of local bonds
Secondary market risks show bonds aren’t always low-risk investments
02 May 2025 - 05:00
I like to revisit bonds and how they work every so often in this column because they’re different from normal share investing.
With a share, you simply buy it — which gives you ownership in the business and future profits — hope it goes higher, and collect any dividends the board decides to declare. We are technically trading these shares in the secondary market (locally the JSE), and if there are more buyers than sellers, the price goes higher...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
This article is free to read if you sign up or sign in.
If you have already registered or subscribed, please sign in to continue.
Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.