Bonds - Government and corporate securities
Bonds are debt instruments used by the issuer in order to finance debt in the short, medium and long term. Investments in bonds involve placing liquidity for at least one year.
Bonds are issued by states (government bonds), but also by large companies (corporate bonds). Government bonds have the risk of the issuing state, and corporate bonds are valued according to the rating of the issuing company. Learn more about each below:
- They are negotiable instruments, issued by the Ministry of Public Finance.
- The issuer undertakes to pay the holder an interest rate (coupon) for a certain period of time and to repay the principal at maturity.
- They are issued in LEI, but also in foreign currency (EUR, USD).
- It differs from government bonds by the nature of the issuer.
- The degree of risk varies depending on the issuer's creditworthiness and rating.
- Their returns vary depending on the issuer's risk.
- T-bills or treasury certificates are issued by the Ministry of Public Finance, with a short-term discount of up to one year.
- Eurobonds are bonds issued by the state or corporations on the foreign market outside the issuer's country of origin.
In order to purchase bonds, it is necessary to open the following accounts at First Bank:
- Current account
- Financial instruments account
- Custody account
The bonds can be issued in LEI, EUR, USD and can have terms from 1 year to 30 years.
Depending on the markets you choose to invest in bond transactions, the fees that apply are those for the settlement of money market transactions.
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