Fixed Income Securities

With QNB Finansinvest, you can invest in fixed-income products such as repo, Treasury Bill, government bond, Eurobond and corporate bond. 

Treasury BIll/Government Bond

Using QNB Finansinvest, you can invest in Treasury Bill or Government Bond and secure your returns under state guarantee.

  • These are the investment instruments issued by the Treasury of the Republic of Turkey, facilitating medium- and long-term utilization of savings.
  • Treasury Bills are short-term securities with less than one year, while Government Bonds are government domestic debt securities with a maturity term of over 1 year.
  • They are issued by the Treasury of the Republic of Turkey via CBRT (Central Bank of the Republic of Turkey) in order to meet the government’s debt requirement through such methods as auctions or public offering.
  • The entire principal and interest payments are made by the government.
  • In secondary market transactions, the current market conditions on the date of conversion into cash are applicable.
  • They are usually of liquid nature, while secondary market liquidities may vary according to the issue features.
  • Clients may earn lower than the amount they have initially invested if securities vulnerable to price fluctuations are sold prematurely.

Eurobond

If you wish to make a long-term investment in foreign currency, you can buy Eurobonds via QNB Finansinvest.

  • Eurobonds are generally issued by institutions, companies or the government and these long-term bonds are issued for overseas in a foreign currency and based on coupon payments.
  • Issued for overseas in a foreign currency, these bonds are often introduced to the markets with various maturities in USD and EUR.
  • Eurobond prices are affected by the financial and economic performance of the issuing country or institution.
  • Although it offers a higher return on investment compared to other foreign currency investments, it is vulnerable to price fluctuations that might occur due to domestic and international developments in the economic and political arena since they are traded in international markets. Therefore, they pose a principal risk.
  • Eurobond returns of each country vary from country to country or from institution to institution.
  • The entire principal and interest payments are made by the government in the case of Eurobonds issued by the Treasury of the Republic of Turkey.
  • Eurobond revenues are more advantageous compared to foreign exchange deposits in terms of tax and subject to tax returns. 
  • The QNB Finansinvest Investment Advisory Unit shares with our esteemed investors their suggestions and advice on Eurobonds.
  • Coupon payments are made in designated periods, which provides a regular cash flow to the client. This takes place on a semiannual basis for USD bonds, while it happens once a year for EUR bonds.
  • Despite their long-term nature, Eurobonds offer customers the advantage of cash conversion before the maturity date.

Corporate Bond

Using QNB Finansinvest, you may aim for higher return on investment with Corporate Bonds compared to treasury bills or government bonds.

  • These are the debt securities issued by banks and other joint stock companies on the basis of discount or coupons with a maturity of over a year.
  • The benchmark interest rate that serves a basis for bond prices are calculated according to the bills/bonds as the discount benchmark rate issued by the Treasury of the Republic of Turkey.
  • Companies present an additional return rate that is above the benchmark interest rate for the bonds they issue, in accordance with their corporate profile.
  • The entire principal and interest payments are made by the issuer.
  • The difference between the Corporate Bonds/Bills and the Government Bonds or Treasury Bills is that no state guarantee is existent since the issuer is a bank or a joint stock company.
  • Corporate Bonds pose more risks compared to government bonds.
  • Reimbursement may potentially not be provided in corporate bonds due to the presence of issuer risk.
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