Among the debt securities are customary for many modern investors, a bond and an exotic bill of exchange. Both instruments have a similar functionality – the issuer who borrowed funds for a bond or bill, undertakes to redeem the paper after a certain period of time and pay its owner a fee. What are the differences between a bill and a bond, what advantages does each instrument have and what is better to choose in a particular situation?
Is it possible for an ordinary investor to participate in the auctions of the Ministry of Finance?
Issuance of government bonds is a common practice, and OFZs have long become a familiar tool for investors. But why does the Ministry of Finance hold auctions for the placement of its securities and why do they talk so much about it in the market? And, if the auction is announced publicly, can an ordinary investor take part in them? This is discussed in detail in this review.
SBGB Bond Fund Review
Not long ago, Sberbank Asset Management proposed a new unit investment fund “according to the norms of Russian law” – on the Mosbirzhi index . At its core, it is something intermediate between the customary mutual funds and the exchange-traded fund ( ETF ). Just the other day, the same management company launched a new fund – this time on the Mosbirzh government bond index. It can be found on the exchange under the ticker SBGB. We understand that this is a fund, what it consists of and what it is estimated to be able to give.
Perpetual bonds: what it is and how it works
Perpetual or “perpetual” bonds are debt securities that do not have a deadline for repayment. For such bonds, the issuer never pays the nominal value of the bond, but in return guarantees an eternal coupon income. Moreover, it is usually a few percentage points higher than conventional bonds. It can be said, this is such a premium for the lack of redemption of par.
What you need to know about the duration and convexity of bonds
Risks are inherent in each investment asset in varying degrees. Its risk group is also characteristic of such a reliable and conservative instrument as a bond. This article discusses one of the most important characteristics of a bond – duration. Today I’ll tell you what it is and how to use the bond duration indicator.
Redemption of bonds on offer: what it is and how it works
We continue to delve into the study of various types of bonds . One of them is built on the mechanism of redemption of debt by the issuer. In this review we will understand: why bonds with an offer are needed, how such securities are bought, where to look for them and what are the advantages and disadvantages of the instrument.