While fixed income securities are considered alternative investment products that can provide relatively higher yield than other traditional bank products, they are risky and may not be appropriate or suitable for all types of investors.

You should not deal in fixed income securities unless you understand their nature and the extent of your exposure to the attendant risks. And even assuming that you understand the nature of these investments, you should not deal with the same unless the product is suitable for you in the light of your circumstances, experience, financial position and operational resources.

The following is a brief summary of certain risk considerations which you should take into account in deciding whether to purchase fixed income securities. This list is not exhaustive; rather it is intended to highlight certain risks that could be related to your investment.

1. Credit Risk / Issuer Risk refers to the possibility that a bond issuer will default on its debt obligation.
2. Liquidity Risk refers to the difficulty of selling the issue in the market due to limited marketability. There is a possibility that the investor of the said issue may not be able to sell or unload the issue quickly enough.
3. Price / Interest Rate Risk refers to the possibility of a reduction the value of a security due to a change in the level of price / interest rates. This is present only if the bond holder or investor decides not to hold on to the security up to final maturity.
4. Reinvestment Risk refers to the possibility that the interest received from the investment may not be able to be reinvested at the same rate or return as the invested funds that generated them.
5. Sovereign Risk refers to the possibility that the payments made related to the Securities or the value of the security may be negatively of by the economy and political events in the country of the Issuer.
6. Call Risk refers to the possibility that the issuer may exercise its option to redeem the bond before maturity. This may shorten the tenor of the Investors intended investment and force the client to settle reinvesting at a lower rate of return.
7. Company Risk refers to the risk that certain factors specific to the issuer and its business may negatively affect or cause the price of the security go down.

What documents do I need to submit if I want to purchase and/or sell fixed-income securities? 

Before any transaction of government securities, Security Bank requires the submission of the following:  

 Note: Additional documents may be required by the Bank or Custodian to facilitate the execution of the transaction.