Are perpetual bonds a good investment?

QnA
1

hi, keep seeing this thing called perpetual bonds.
Has anyone invested in perpetual bonds over here?
Are they a good investment option or like super risky?

2

they’re kinda different
they don’t have a fixed maturity
issuer can call them back whenever they want (depending on terms)

5

Hello, just to sum it up.
Perpetual bonds, especially bank-issued AT1 bonds, function very differently from regular corporate bonds:

  • They don’t have a fixed maturity date

  • The issuer may call (redeem) them after a certain period, but it’s not guaranteed

  • Interest payments can be skipped in specific situations, depending on the terms

Because of these features, perpetual bonds generally come with higher risk and behave differently from standard fixed-maturity bonds.

They’re not necessarily “good” or “bad”
It depends on how comfortable someone is with the structure and risks involved.

If you want a simple breakdown, we also have a dedicated explainer here: