Vision Bank vs bonds
Bonds are contractual income; this programme is trading income. Different mechanisms, different risks, sometimes complementary in a portfolio.
Key risk difference: A high-grade bond pays a contractual coupon and returns principal at maturity, subject to issuer credit risk and rate risk. Vision Bank pays no contractual coupon — returns are trading outcomes and capital is at risk.
Side-by-side comparison
| Attribute | Vision Bank programme | Bonds |
|---|---|---|
| Income mechanism | Monthly trading net P&L (target, not contractual) | Contractual coupon |
| Principal | At risk; no repayment guarantee | Repaid at maturity subject to issuer credit |
| Interest-rate sensitivity | Low direct exposure | High for long-duration bonds |
| Credit risk | Counterparty & custody risk instead | Issuer default risk |
| Typical yield today | Target multiples of investment-grade bond yields | Roughly in line with policy rates + credit spread |
| Fit in a portfolio | Return-enhancing sleeve | Duration and income anchor |
Why some investors choose Vision Bank
Yield potential well above investment-grade bonds, with returns that are not driven by rate movements.
Why some stay with bonds
Investment-grade bonds are contractual, senior in the capital stack, and provide portfolio ballast when equities fall.