Fixed Income Securities Brokerage

We conduct bond trading for customers who want to be sure of earning fixed returns on their investments in the medium and long terms.

Government Debt Securities:

We actively engage in the trading of all Turkish lira and FX-denominated government debt securities and T-bills on behalf of our individual and corporate customers and we also provide them with the opportunity to take part in auctions conducted by the Treasury.

Government debt securities consist of T-bills (instruments with up to one year’s maturity) and of government bonds (instruments with longer maturities). These instruments have been issued by the Turkish Treasury in Turkey or abroad and may be denominated in Turkish liras or in some other currency. With exception of floating coupon-bearing instruments, they pay a fixed return (the nominal value) at maturity. Subject to market conditions, it may be possible to convert some or all of them to cash before they mature. Because of their underlying state guarantee, there is little if any risk of default on principal or interest payments when these securities mature and thus they enjoy a high degree of liquidity on secondary markets. Government debt securities are a good choice for customers who want to be sure of earning fixed returns on their investments in the medium and long terms.

For detailed information about the tax consequences of securities trading please click here.

Private Sector Bonds:

TSKB takes a discriminating approach in its selection of the private-sector bonds and bills that it offers to its customers. These instruments generate returns that are relatively higher than those provided by government debt securities.

Private sector bonds are debt securities issued in Turkey by banks and other joint-stock companies. Some are sold at a discount; others are coupon-bearing. Private sector debt securities pay higher returns than do government debt securities but those who invest in them bear all the risk of the issuer’s defaulting.

For detailed information about the tax consequences of securities trading in Turkey please click here.

Eurobonds:

Eurobonds give customers wishing to invest in FX-denominated assets a chance to earn higher yields than are otherwise possible when interest rates are low.

Eurobonds are FX-denominated, coupon-bearing, long-term debt instruments which are issued by governments and companies in international markets. They are an appropriate choice for those who are interested in investing in a long-term basis in a foreign currency. These instruments tend to have maturities ranging from five to thirty years. Some coupons generate fixed returns; others are variable-interest. Eurobonds are generally issued in US dollars or euros but instruments denominated in other currencies such as Japanese yen and Swiss francs are not unknown. The eurobonds issued by the Turkish Treasury are backed by state guarantees and thus are seen as being more liquid.

Eurobonds pay guaranteed returns. If they are sold before maturity, they are exposed to some principal risk owing to movements in market prices over their lifetime. However that risk vanishes if they are held until maturity.

For detailed information about the tax consequences of securities trading in Turkey please click here.

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