What We Do
Building Wealth Safely: Your Guide to Bond Investments
SIA Group is a proud partner of Propeller, a third-party entity that offers a variety of bonds for those looking to optimize their investment portfolios and enhance their financial outcomes. Whether they’re government, corporate, and/or municipal bonds, Propeller ensures our clients have access to several markets and automates the entire surety purchase process for instant bond issuing.
How we do it
Using Propeller Bonds is Simple!
In our self-service portal, search for the bond you need by type or state and you will be directed to the appropriate bond application(s). You can update your details, get copies of insurance, renew bonds, and purchase new bonds in minutes.
We have access to more than 7,000 types of bonds, whether it’s Contract, Commercial, or Fidelity bonds. Explore our wide variety of bonds to choose from, including:
Contract
- Contractor Pre-Cert
- Bid Bonds
- Performance Bonds
- Subdivision Bonds
Commercial
- License and Permit
- Notary Bonds
- BMC84 Program
- Mortgage Bonds
Fidelity
- ERISA Bonds
- Business Services
- Employee Dishonesty
FAQs
For more detailed FAQs, check out our Learning Center!
This is a fundamental question that seeks to understand the concept of a bond. A bond is a debt security or financial instrument issued by governments, municipalities, corporations, or other entities to raise capital. When an investor purchases a bond, they are essentially lending money to the issuer in exchange for regular interest payments (coupon) and the promise of repayment of the principal amount at a specified future date (maturity).
This question seeks to understand the mechanics of bonds. Bonds work as a contractual agreement between the issuer and the bondholder. The issuer agrees to pay periodic interest (coupon) to the bondholder over the bond's life, and at maturity, the issuer repays the bond's face value (par value) to the bondholder. Bonds can be bought and sold in the secondary market, and their prices can fluctuate based on interest rates and the creditworthiness of the issuer.
Investors often inquire about the various types of bonds available. There are several types of bonds,
including government bonds, municipal bonds, corporate bonds, and agency bonds. Government bonds are issued by national governments, municipal bonds are issued by local governments, and corporate bonds are issued by corporations. Each type of bond may have different risk levels, interest rates, and tax implications
This question aims to understand the inverse relationship between bond prices and interest rates. When interest rates rise, newly issued bonds offer higher coupon rates, making existing bonds with lower coupon rates less attractive. As a result, the prices of existing bonds fall to align with the prevailing interest rates. Conversely, when interest rates decline, existing bonds with higher coupon rates become more valuable, causing bond prices to rise.
Investors often inquire about a bond's credit rating and its significance. Credit rating agencies assess the creditworthiness of bond issuers based on their ability to repay debt. Bonds are assigned credit ratings ranging from "AAA" (highest credit quality) to "D" (default). A higher credit rating implies lower risk, and therefore, higher-rated bonds typically offer lower interest rates compared to lower-rated bonds, which carry higher risk and may offer higher yields to compensate investors.