Eurobond Features
The coupon rate may be fixed or variable, which can be paid at a six-month or one-year maturity.
In Turkish Eurobonds, USD bonds pay coupons every 6 months, while EUR bonds pay coupons once a year.
They are usually issued for the long term; however, in the secondary market, they can be turned into cash without waiting for the maturity date subject to the market conditions on the date of liquidation. Earnings may exceed expectations in a market with declining interest rates, whereas higher interest rates can curb a customer’s income, and they may even lead to loss when selling.
Eurobonds are usually issued to the bearer; however, they cannot be delivered physically.
No withholding tax applies to Eurobond coupon payments. However, the investors are liable to declare their income.
You need to have a current account at Alternatif Bank in order to trade Eurobonds.
The difference between buying and selling listings depends on the liquidity and transaction volume of the issue.
Eurobonds are traded in international primary and secondary markets.
The participants of these markets include countries, companies, domestic and international banks, international funds and pension companies, and corporate and individual investors.
