Bonds and Structured notes

Bonds and Structured notes

Bonds are interest-bearing securities that represent the issuer's obligation to repay interest (the so-called coupon) and borrowed capital within the agreed terms. The owner of the bond is a creditor of the issuer. An investor can get a double return - a coupon and possibly a profit from the exchange rate difference in the event of a favorable change in the bond price. Within the general group of bonds, there are other subgroups that have their own specifics, which you can read about below.

  • Senior bonds

    Senior bonds are global notes with a nominal value and determined interest yield (coupon). 

  • Subordinated bonds

    Subordinated bonds are global notes usually with a nominal value of 10,000 CZK and with a fixed or variable interest yield (coupon). 

  • Structured bonds and Structured notes

    Structured bonds (or Premium Bonds) are global notes usually with a nominal value of 10,000 CZK whose yield consists of a premium. 

  • Mortgage bonds

    Mortgage bonds are global notes with a nominal value of 1 CZK or 10,000 CZK and determined interest yield (coupon), which can be fixed or variable (usually depending on the six-month interbank rate PRIBOR). 

  • Reverse Convertibles

    Reverse Convertible is a security linked to an underlying share, offers a highly attractive interest rate and the coupons significantly exceed the market interest rate. 

  • Government Bonds

    Securities with which the owner’s right is associated to demand from the issuer, i.e. the state, the repayment of an owed amount in the nominal value on the maturity date. 

Erste Group Bonds

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