Bond Market Transactions

If you prefer conservative investment strategy, you might be interested in rather high investment safety provided under investing in bonds.

In the bond market, we cooperate with leading foreign banks and financial companies. Since we have many counterparties, we can offer you the opportunity to work with the majority of debt securities.

We ensure access to the U.S. and European markets, where you can make transactions with government, corporate and municipal bonds. We also provide access to local bond markets denominated in local currencies and markets of government and corporate bonds in Western and Eastern Europe, Latin America, Asia and Africa.

Besides execution of purchase and sale transactions, you have the opportunity to participate in the new offerings of debt securities, as well as in auctions and offers.

Minimum lots

The US bond market offers investors of all categories broad opportunities for investment. For example, most government and corporate bonds have minimum trade lots of 1,000 USD at face value, and GNMA, FNMA, FHLB, and FHLMC bonds have lots of 10,000 and 25,000 USD. However, for amounts less than 100,000 USD or EUR at face value, the chance to acquire specific bonds often depends on whether those securities are on the lists of sale offers (inventories) of our brokerage partners.

The standard volume of transactions on European debt market and on the Eurobond market amounts to 500,000 or 1,000,000 at face value in the investment currency, but we are able to carry out transactions for our customers in the amount of 100,000 USD at face value and less.

We are ready to grant you financing against pledge of investment portfolio for the sake of increasing investment amount or for other purposes.

  • Income from Capital and Capital Gains Tax

  • Expense impact on investment return

    Expenses related to investment services affect the return of the client’s investments. According to the requirements of Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments (MiFID II), example should be provided to demonstrate the impact of expenses on the return of the investments made by the client. The examples are provided for illustrative purposes, and those do not guarantee the stated return in future.

    ABLV Bank bonds

    At the beginning of the year, the investment of USD 10 000 is made in ABLV Bank bonds with the fixed rate of 2.25% p.a. (coupon payment twice a year). ABLV Bank bonds are held to maturity. Return at the end of the first year is as follows:

    Return (coupon payments) without any fees charged USD 225
    Fees, incl.: USD 110
        brokerage fee for the bond purchase USD 50
        bond custody fee (12 months) USD 60
    Return after charging the fees USD 115

    If there were no fees, the client’s return would amount to 2.25% (p.a.). Whereas as a result of charging the fees of USD 110 the bond return over the first year is decreased to 1.15% (p.a.).

    Bonds of other issuers

    At the beginning of the year the amount of USD 100 000 is invested in the bonds with the fixed rate of 3.00% p.a. (coupon payment twice a year). The bonds are purchased at the price of 100% and sold at the end of the year at the price of 101%. Return at the end of the year is as follows:

    Return without any fees charged, incl.: USD 4 000
        coupon payment USD 3 000
        difference between purchase and sale price USD 1 000
    Fees, incl.: USD 440
        brokerage fee for the purchase USD 100
        brokerage fee for the sale USD 100
        custody fee (12 months) USD 240
    Return after the fees USD 3 560

    If there were no fees, the client’s return would amount to 4% (p.a.). Whereas as a result of charging the fees of USD 440 the return received by the client is decreased to 3.56% (p.a.).

  • Additional Information for Customers

    Use your Internetbank ID and password to access customer information.