III.21. Getting coupon income.

Another very popular strategy is to get coupon income from bonds. The algorithm for working with these tools will be given later in this book. For now, we note that the main idea of the strategy is to purchase debt receipts from various issuers from federal to private LLC and receive two types of profit: coupon income paid regularly (year, six months, 4 months, 3 months, 1 month) and the difference in price relative to the value of the nominal value of the bond. I.e. if the bonds are issued with a nominal value of 1000 rubles, and the current value is 750 rubles, then you can expect to receive 250 rubles from one bond when the bonds mature by the issuer. This type of instrument carries risks of the issuer’s refusal to fulfill its obligations on the basis of technical default or bankruptcy, which should be taken into account in its work. It is not a bad idea to buy bonds that are getting much cheaper on the news, and sell them after a temporary rise in price.

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