Investments in bonds (debt obligations of companies) are primarily advised for conservative investors with the purpose of yearly profitability slightly above the depository rates in corresponding currency.
NORVIK BANKA gives clients the opportunity to conduct transactions with the following types of bonds:
government
corporate
municipal
bonds of emerging markets
eurobonds
rouble bonds
A branching network of counterparties allows the bank to maintain firm quotations both for bonds and eurobonds of issuers from developed countries and emerging markets (including issuers from Baltic and Scandinavian countries) and for debt securities of CIS countries, which are most popular among our clients.
Advantages of Bonds
The main advantages of bonds are:
reliability: market prices for bonds are subject to comparatively small fluctuations
stable income: interest on bonds is paid regularly
high liquidity: if desired, bonds can be easily sold on stock market
certainty: the date of repayment of the bond by the borrower is known beforehand as well as the bond face-value that will be received by the investor upon its repayment
Reliability: market prices on bonds usually do not experience big fluctuations
Stable income: payments of percent of income on bonds are made regularly
High liquidity: it is possible to sell bonds in the share market
Definiteness: the date of repayment of the bond is known in advance by the borrower, as well as the face-value of the bond which will be received by the investor upon its repayment
The following should be noted among the side benefits of brokerage service by NORVIK BANKA on bond markets:
transactions with odd lots starting with USD 20 000 at face value
additional financing of operations with bonds, allowing the increasing of the profitability of investments
Trade in Bonds
Keeping a bond until its repayment can be equated to a deposit investment in a bank of one or another country while the investor himself specifies its period and the correlation between the profitability and reliability of the investment.
Bonds of more than 300 000 issuers are circulating in the world. Over 50% of the volume of all bonds in the world are floated by governments and more than 80% of these bonds are denominated in three main hard currencies (USD, EUR, JPY). Bonds of more than 150 issuers from CIS countries are traded on international markets, which are denominated in hard currencies (eurobonds).
Bond trading is available within the classic Brokerage Service by NORVIK BANKA.
