Securities

They are long term and coupon payment debt instruments issued by the company or the government in foreign currencies. Bond is generally issued in Dollars and in Euro by the Undersecretariat of Treasury of the Republic. The repayment of the total principal and interest in Bonds, which are issued by the Undersecretariat of Treasury of the Republic, is realized by the government.

As they are offered for sales in foreign currencies in the international markets, they have long term. Their maturity varies from 1 year to 30 years. Though they are issued as long term, they are traded in secondary markets and they can be liquidated before the end of the maturity. In such situations, the market conditions at the date of liquidation will be applied.

In bonds issued in Dollars, the coupon payment is made every 6 months and in bonds issued in Euro, the coupon payment is made once a year. The coupon payment dates are pre-determined, and they can change according to the maturity of the bond. Coupon interests are expressed as simple annual interest. The coupon payment is made in terms of nominal amount. While making the calculation of the periodical coupon payment amount, the nominal amount of Bond is multiplied with the periodical coupon interest rate.

The accumulated interest starts from the issue date of Bonds and continues until the next coupon interest repayment date. In each Bond you buy or sell, you pay for or withdraw the accumulated interest.

The financial and economic performances of the country or the institution issuing the bond and the developments in international financial markets influence the Bond prices. The Bond returns of each country vary from one country to another or from institution to another. As it is traded in international markets, it is open to price fluctuations that both domestic and international economic and political developments can produce. For this reason, there is a risk of principal.

If you think of capitalizing on your savings in instruments which have a higher possibility of return than fixed income securities but which are more risky, if you want to be a shareholder in the leading companies of Austria and of the world, you can conduct your domestic and foreign equity transactions. When the equity price decreases, there is a risk of losing from the principal. Equity is an investment instrument which has a high risk level. The investors with high risk appetite can prefer this product.

Please note that investments on the capital market may be subject to market-related price fluctuations, both upwards and downwards and can also lead to capital losses.

Following risk types should be taken into consideration when trading with bonds and equities:
Price risk: Price risk refers to the possible fluctuations in the value of individual investments.
Credit risk: Credit risk is the risk of insolvency of the partner, i.e. a possible inability of the partner to meet its obligations on time or definitively, such as dividend payment, interest payment, repayment, etc.
Liquidity risk: The ability to buy or sell an investment at any time at market prices is called tradability or liquidity. Tradability can be problematic in the case of narrow-market securities.

Important Notes:
This advertisement is provided by DenizBank AG for information purposes only, is non-binding and constitutes neither a recommendation nor an offer or invitation to make an offer. It is expressly pointed out that financial instruments and investments sometimes involve considerable risks. Investments may give rise to tax obligations that depend on the customer's personal circumstances and may change in the future. Investments in securities are associated with higher risks, including capital losses.