Qatar Exchange recently organized a seminar for foreign investors to update them on bonds trading and stress on the importance of such investments tools as one of the products offered for trading on the stock exchange along with stocks.

The two-day event, held at the Four Seasons Hotel, shed light on the bond market and how bonds were traded in the presence of a group of existing investors in the stock market.

Roger Warnock from Qatar Exchange gave a presentation on the types of bond, investment advantages, pricing mechanism, and yield calculations.

He explained that the bonds market provides investors with access to additional investment products, rather than being limited to a single investment tool as is the case with stocks.

Bonds will be traded through brokerage firms and the pricing will be through the mechanism of supply and demand, stated Warnock.

He pointed out that the bond prices were influenced by prevailing market interest rates and would usually go up if there was a decrease in those rates, adding that bond prices are inversely proportional to yield, and capital gains can be made if interest rates should fall.

Warnock dubbed the bonds as an important funding channel used by governments, companies and institutions to ensure the necessary liquidity to fund their projects.

"These bonds also provide protection for investors’ portfolios by giving them the ability to diversify risk as bonds are deemed to carry less risk and provide safe periodic income," he added.-TradeArabia News Service