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What isn't a Bond?
Several products get called bonds ... but they're not
Fixed term deposits sold by banks are not bonds
So called "mini-bonds" are not bonds either!
If it's not listed and if you can't trade it then it's not a bond
Banks like to call their fixed-term deposit accounts, bonds. But they're not. They're deposit accounts! You can't trade them and you're locked-in.
Banks rather unhelpfully call these deposit accounts bonds - which confuses some investors.
Locking money away in a bank is not an investment, it's a deposit of cash - hence the protection given and why returns are low compared to the investment market.
Mini-bonds, despite the name are not bonds either. You can't trade them and as investors found out the hard way, you're locked-in with no exit via a secondary market.
Mini bonds are actually loans between the individual investor and the borrower.
They are not bonds.
They are not listed.
And you can't trade them.
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