A bond is like an i.o.u. You effectively lend money to a company or government in return for interest (coupon) and the guaranteed return of your investment at the end of the bond's life (known as "the maturity date"). There are lots of different types of bonds, some maturing in a few years, some maturing after 25 years and some are even perpetual (i.e. they never mature). There are many reasons why Offshore Bonds are regarded as superior investments to their Onshore equivalents. For one thing, investors planning to live or retire abroad, would likely pay lower taxes on the bond(s). For investors who are investing for the long term, there is a greater opportunity for the bond to offset the effects of tax (and charges) and outperform an onshore equivalent.

Click here to read full article.