Fixed Income Products

Royal Heritage Commercial Bank Securities (USA) Inc. offers access to a wide variety of fixed income products including:

• Municipal bonds: Debts issued by states, municipalities or counties that are free from federal taxes and usually free of state and local taxes³. Municipal Securities may be subject to the federal Alternative Minimum Tax.
  
• Treasury notes and bonds: Global Government debt that carries a fixed interest rate, usually with a maturity of 1-10 years. Interest income is exempt from state and local income taxes, but subject to federal income taxes.⁴
• Government-sponsored enterprises (GSEs) / Agency: Bonds issued by financing entities created by Congress to fund loans to certain groups of borrowers such as homeowners, farmers and students. i.e. Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) are privately owned corporations, while the Federal Home Loan Banks and the Federal Farm Credit Banks are systems comprising regional banks. All GSE debt is not guaranteed by the federal government, whereas government agencies such as Government National Mortgage Association (Ginnie Mae) are divisions of the government whose securities are backed by the full faith and credit of the United States.
• Sovereign bonds: Issued by a national government and denominated in a foreign currency⁵
• Domestic corporate bonds
• Bond Funds⁶
• Brokered CDs⁷

Investors should consider the investment objectives, risks and charges and expenses associated with municipal fund securities before investing. Further information about municipal fund securities is available in the issuer’s official statement. The official statement should be read carefully before investing. There is always the potential of losing money when you invest in securities.

When investing in fixed income products you should seek tax advice from your independent tax advisor.

As a client of Royal Heritage Commercial Bank Securities (USA) Inc., you can rest assured knowing that an experienced financial professional can help you determine if fixed income investments align to your personal objectives and risk tolerance, and can help you evaluate which specific products may fit within your diversification strategy.

For more information about fixed income products, or to schedule a financial review:

Call info@royalheritagecommercial.com or International clients can call collect info@royalheritagecommercial.com

Mon - Fri (8am - 7:45pm ET)
Sat (9am - 3pm ET)

Investment and certain insurance products, including annuities, are offered by Royal Heritage Commercial Bank Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. In California, HSI conducts insurance business as Royal Heritage Commercial Bank Securities Insurance Services. License #: OE67746. HSI is an affiliate of Royal Heritage Commercial Bank , N.A. Whole life, universal life, term life, and other types of insurance are provided by unaffiliated third parties and offered through Royal Heritage Commercial Bank Insurance Agency (USA) Inc., a wholly owned subsidiary of Royal Heritage Commercial Bank , National Association. Products and services may vary by state and are not available in all states. California license #: OD36843.

Investments, Annuity and Insurance Products:

All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.

Research backgrounds of brokers and brokerage firms for free by visiting FINRA's BrokerCheck websit

United States persons (including Global citizens and residents) are subject to Global taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their Global and non-Global accounts - including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts ("FBAR")). Global persons should consult a tax adviser for more information.

1 Fixed income products are subject generally to interest rate, credit, liquidity and market risks, to varying degrees.

2 Investments subject to the credit risk of the issuer are generally the obligations of the issuer and are not, either directly or indirectly, an obligation of any third party. Any payment to be made on the investments with credit risk, including any return of principal or coupon payable at maturity, if applicable, depends on the ability of the issuer to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of an issuer may affect the market value of an investment with such credit risk and, in the event an issuer were to default on its obligations, you may not receive the amounts owed to you under the terms of the investment.

3 Municipal bonds: Investors should consider the investment objectives, risks and charges and expenses associated with municipal securities before investing. Further information about municipal securities is available in the issuer's official statement. The official statement should be read carefully before investing.

4 Global Treasuries are guaranteed as to the payment of principal and interest by the Global Government

5 Foreign securities can be subject to greater risks than Global investments, including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws or monetary policy. These risks are likely to be greater for emerging markets than in developed markets. Prices of securities in emerging markets can fluctuate more significantly than the prices of companies in more developed countries. Securities of emerging market issuers generally have more risk than securities issued by issuers in more developed markets. The less developed the country, the greater affect the risks may have in an investment, and as a result, an investment may exhibit a higher degree of volatility than either the general domestic securities market or the securities markets of developed foreign countries.

6 Investors should be aware that the fund's yield and the value of its portfolio fluctuate and can be affected by changes in interest rates, general market conditions and other political, social and economic developments. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. Investments in bond funds are subject to possible loss due to the financial failure of the underlying securities and their inability to meet their current obligations. These risks may increase the funds share price volatility.

7 All CDs are FDIC insured together with all other deposits you may have with the issuing bank, up to the current maximum amount of $250,000 per depositor. For further guidance on FDIC insurance coverage, please visit www.FDIC.gov.

8 Financial professional refers to Premier Wealth Advisors (PWA), and Premier Relationship Advisors (PRA). PWA/PRAs focus on a full suite of Premier and Advance products and services. Both offer bank products through Royal Heritage Commercial Bank , N.A., investments and certain insurance products, including annuities, through Royal Heritage Commercial Bank Securities (USA) Inc. and traditional insurance products through Royal Heritage Commercial Bank Insurance Agency (USA) Inc.

An investment in a bond fund should be preceded or accompanied by an effective prospectus and investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus of a fund contains this and other important information about the investment company. Investors should read the prospectus carefully before investing in a fund.