Buying foreign bonds

M

Metafora

Registered User
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5
Hi,
Couple of questions re foreign bonds that hoping someone can educate me on!
1) where can an individual investor buy foreign bonds e.g Chinese , Vietnamese etc.. And how much does it approx cost.
2) what is the tax implication . Eg cpt
3) I see 1yr bonds for china are currently 4.15%
This to me seems a very attractive rate but what is the likelihood that after 1yr is up that u don't get paid? China financially are in a pretty good place compared to most countries and are hardly are in same category as Greece etc..
Any ideas where can I find out the record of china paying out on their bonds previously
Maybe I'm missing something here ??
Thanks
 
1. Any decent broker should provide access to bonds.
2. You are liable to CGT and income tax. (i'm not an expert)
3. You need to take inflation rate and currency fluctuations into consideration. 4.15% is bad return to begin with, but it might be negative if exchange rate goes against you.

Do research on foreign bond ETFs or closed end funds.
 
What price are you buying the bond at? Remember, in 1 years time, you will be selling it at par i.e. €100. No point in buying it at over €104.15
 
Thanks for replies,
As you may gather my knowledge on this is limited !
I'm getting bond prices at below link
investing.com/rates-bonds/china-government-bonds
I thought the way is worked is say I buy €100 worth of Chinese bonds in 1 yr time I'll get paid €104.50 . This would be regardless of how currencies or bond rate fluctuate between then or now?
 
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