Thanks to the wide range of correspondent bank relations initiated between Creditwest Bank and the Banks located in Turkey, we are able to offer you access to bonds issued either by Republic of Turkey’s Treasury, Turkish Banks or Turkish Companies.
A bond is a debt investment through which an investor loans money to an entity, typically government, bank, or a company, for a specific period of time at a variable or fixed interest rate. It is a risk-free product for investors who opt for keeping the bond until expiration.
Customers, who would like to monitor the changes in prices in the bond market and buy and sell bonds accordingly, might earn additional yield. The actual market price of a bond depends on a number of factors including the credit quality of the issuer, the length of time until expiration, and the coupon rate compared to the general interest rate environment at the time.
Customers, who would like to earn additional interest rate over government bonds, (which are with least risk) might opt for buying bank or corporate bonds, which offer higher interest rate depending on the credit quality of the issuer.
Government Bonds: are issued by the Treasury of the Republic of Turkey. Bonds maturing within a year are discounted and the ones with maturity periods ranging from 1 to 10 years are coupon bonds. Coupon rate on a bond is the rate of interest the bond issuer will pay on the face value of the bond, expressed as a percentage and it might be fixed or floating.
Bank Bonds: are issued by the Banks registered in Turkey, and they tend to offer additional interest compared to government bonds.
Corporate Bonds: are issued by the Investment Companies located in Turkey on behalf of companies (both financial and real). These bonds are mostly issued with maturities of up to 2-3 years with floating coupon rates. They take government bond rates as base and pay additional interest rate on it in order to cover for their risk. According to the rules enacted by the Capital Markets Board of Turkey issuers have to make financial statements and credit ratings of the debtor companies for the review of the potential buyers.