Where do comfortable clients invest?
In the conditions of real zeroing of dollar rates on bank deposits in foreign currency, which slightly exceed half a percent, European bonds look like a nice option for capital allocation. In the main, financiers are interested in debt securities with an investment grade rating of BBB- and above is a municipal debt, corporate securities of municipal companies, etc..
Nesting freedom without restrictions
European bonds choose, as a tool for preserving and increasing capital due to several circumstances. In-1-x, securities serve as protection against depreciation of the state currency, for the reason that, that the security is denominated in the currency of another state and the income comes out in it, the financier insures himself against sharp fluctuations in the exchange rate. In-2-x, they are liquid inventory, as the Eurobonds are backed by powerful issuers with stable market positions, securities issued by them are constantly highly quoted and rapidly sold. And 3-x, specifically for the same reason they are classified as reliable tools.
However, the Eurobonds has its own flavor, specifically, the highest entry threshold. For most securities, a small lot is about 200 thousand. dollars or euros, with an average efficiency of 3-4 percent per annum. Such a large lot allows regulators to protect unskilled financiers from the risks of this market.
Despite the reliability of this tool, when investing, special attention should be paid to the choice of issuers. Usually, personal financiers do not have relevant experience and expert research, to conduct a credit study of the company, conduct a study on the terms of a specific bond issue and, how in consequence, find paper with the highest coupon efficiency and growth potential. That is why financiers should choose European bonds with the help of professional brokers..
How to buy European bonds?
Exchange-traded European bonds can be purchased on an ordinary brokerage account, for example, via the phone program "BCS World of Investments", but only Russian issuers are on the MICEX and the choice of securities is rather limited. Most of the Eurobonds are traded on the OTC market OTC, to which we provide access on the tariff plan "Individual broker».
The average market commission for purchasing European bonds on the OTC market in brokerage companies is from 0,15 up to half a percent any. In other words, if you plan to purchase paper for 200 thousand. Dollars, you will need to pay 600 dollars at commission 0,3 %. If you decide to sell these securities and purchase the rest, then you make two more deals with Eurobonds, and the total commission in such a situation will be 0,9 % from assets.
