Bond is NOT equivalent to a fixed deposit. Bonds are mainly for medium and long term investment, not for short term speculation. You should be prepared to invest your funds in Bond for the full investment tenor. Any redemption prior to Maturity Date (unless called by the Issuer) is subject to marked-to-market cost and may result in the Customer losing part of or all the Principal Amount.
Bond issuer is unable to make interest or principal payments when due, as per the bond agreement, the issuer is said to be in default, and you may not recover your full investment capital.
THE DEBT SECURITY IS SUBJECT TO THE PERCEIVED/ACTUAL MEASURES OF CREDIT WORTHINESS OF THE ISSUER AND THE GUARANTOR (IF APPLICABLE). THERE IS NO ASSURANCE OF PROTECTION AGAINST A DEFAULT BY THE ISSUER/GUARANTOR (IF APPLICABLE) IN RESPECT OF REPAYMENT OBLIGATIONS. IN THE WORST CASE SCENARIO, THE INVESTOR MIGHT NOT BE ABLE TO RECOVER THE PRINCIPAL AND ANY COUPON IF THE ISSUER AND/OR THE GUARANTOR (IF APPLICABLE) DEFAULT ON THE DEBT SECURITY.
THE INVESTOR IS REMINDED THAT DEBT SECURITY IS NOT PROTECTED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.
ANY MONEY WITHDRAWN FROM AN INSURED DEPOSIT FOR THE PURPOSE OF PURCHASING DEBT SECURITY IS NO LONGER PROTECTED BY PIDM.