CFD Bonds
What are CFD Bonds?
CFD Bonds are financial derivatives that provides exposure to OTC Corporate Bonds at a fraction of the notional, i.e., you can purchase S$50,000 of a S$250,000 minimum denominated Corporate Bond!
The performance of CFD Bonds mirror the actual underlying Corporate Bond - this includes the actual market price fluctuations, coupon payments, corporate actions etc.
What is the minimum capital outlay for CFD Bonds?
For fractional notional size (increments of S$50,000) with 20% initial margin (5x Leverage) on select OTC corporate bonds, the capital outlay can start from as low as S$10,000!
What is the financing rate for CFD Bonds?
A floating financing rate is charged on CFD Bonds, which references the T-2 published rate,
for SGD, SIBCSORA (overnight SORA)+ 1.80%, and
for USD, OBFR01 (US Overnight Bank Funding Rate) + 1.80%
Financing rates are refreshed daily.
Is there a list of bonds offered under CFD Bonds?
As the bond universe is too broad, we are unable to provide an exhaustive list of bonds offered.
As a guideline, we can take in high quality SGD bonds and G7 currencies bonds that are investment grade rated.
For more details, please check with your Trading Representative or send your questions to the Bond team directly:sg.cfdbondapps@cgsi.com
How do I trade CFD Bonds?
You can reach out to your Trading Representative to place your first trade!
Can CFD Bonds be traded via the CFD Platform?
Unfortunately, as bonds are OTC in nature, we are unable to provide live quotes on the electronic platform at this moment.
Other related questions on CFD Bonds
Please reach out to your Trading Representative or send your questions to the Bond team directly:sg.cfdbondapps@cgsi.com