Debt Securities
Debt securities are financial instruments that represent a loan made by an investor to an issuer, which can be a government, corporation, or other organization.
- These securities promise to pay the holder a specific amount of money, known as the principal, along with interest, at a predetermined maturity date
- They are negotiable instruments, meaning they can be bought and sold in the market before they mature.
Bonds
Long term debt securities by which the issuer is required to pay out the principal and interest listed in bond’s prospectus within the defined timeframe (most often 6 months or annual coupons) to the bond owner. Bonds can be issued by states, local government (municipal bonds), banks and companies.
By investing in bonds, the client is assuming bond issuer’s credit risk, interest rate changes risk, geopolitical risk, exchange rate risk and reinvestment risk.
Commercial Bills
Short-term securities (up to a year) by which the issuer undertakes to pay the holder the nominal amount of commercial bills at maturity. Bills are issued through a program with a duration of one year.
The amount of the program represents company's needs for short-term financing. Tranches are issued within the program, whereby the sum of the amount of outstanding tranches shall not exceed the amount of the program. The tranches are issued at a discount.
Treasury Bills
Securities issued by the Ministry of Finance with maturities of 91, 182 and 364 days and the denomination of 13.272,28 EUR.
They are entered at auctions published by Croatian Ministry of Finance, on which domestic banks and domestic companies are entitled to participate.
They are sold at primary auctions at a discount, and after that traded on the secondary market.