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Tutorial: Structured bonds

What is a structured bond?

Structured bonds are debt securities that feature individualized terms. The main characteristic of such bonds consists of the general terms of issue that define maturity, repayment and interest rates (coupons). Structured bonds are attractive alternatives to conventional debt securities, because their terms can be defined flexibly. The structure of the bonds may result in attractive earnings opportunities..

How does a structured bond work??

Maturity, repayment and interest rate (coupons) of a structured bond are defined by the individual terms of issue. The flexibility of the structure makes it possible for the bond to take advantage of current opportunities on the bond market and offer attractive yields.

Your benefits

A structured bond is a long-term investment with above average earnings chances. The flexible bond terms allow investors to profit from current opportunities on the bond market.

Your advantages

  • You profit from the very attractive interest paid on your principal.
  • The yield opportunities are higher than on classical bonds.
  • The repayment of the principal is guaranteed upon maturity.
    .

Details you should be aware of

  • Repayment of the principal at 100% applies only upon maturity.
  • Price fluctuations are possible during the life of the bond and therefore premature selling could result in a price loss.
  • These bonds may carry higher risks than classical bonds due to the individual bond terms.

How do structured bonds react to…

… rising interest rates?
Maturity, repayment and interest rate payments of a structured bond are determined by the individual terms of issue.

… stable interest rates?
Maturity, repayment and interest rate payments of a structured bond are determined by the individual terms of issue.

… falling interest rates?
Maturity, repayment and interest rate payments of a structured bond are determined by the individual terms of issue.





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