Bonds are intended for customers who prefer investments with a predictable level of earnings. These fixed-income securities have a pre-defined and fixed interest income (coupons) and a pre-defined maturity term. You can sell bonds before their maturity date. In such a case, the bond price will depend on the market situation existing at the time of the selling thereof and of the level of interest rates.
You can check the specific features of the bonds you want to buy in the bond prospectus or other document, which we encourage you to read in detail.
- Fixed-income bonds have a predictable level of earnings
- Exchange-traded bonds can be sold before their maturity date
- Fluctuations of the return on investments are usually lower in comparison to the investment funds
- Changes to the interest rates on the market may alter the value of investments in these debt securities. As interest rates on the market increase, the value of investment in debt securities decreases.
- Investors investing in long-term debt securities take a higher risk than when they invest in short-term debt securities
- There is a risk of losing all or part of the funds invested
Pricing of investment products depends largely on the market you are planning to invest in. However, you should consider with the following fees:
- Securities account opening, which is free of charge
- When buying from SEB Market brokers, a trading spread applies. When buying through a stock exchange, the trading spread does not apply, but a one-time trading fee applies
- Monthly safekeeping fee
- A financial transaction tax may apply in some countries
Debt securities can be issued by governments of different countries or companies. The return on investment depends on the credit risk of the entity, which is usually defined by a credit rating.
The Government of the Republic of Lithuania issues the securities each week and offers them on the initial offering auction (schedule is available here).
Secondary market prices of debt securities. Debt securities are also traded on the NASDAQ OMX Vilnius Stock Exchange.
Lithuanian Government Saving Notes – debt securities
Savings notes issued by the Government of the Republic of Lithuania are debt securities that are only available for individuals to acquire. The Government of the Republic of Lithuania is responsible for paying out the nominal value plus the accrued interest on the day of maturity.
Savings notes are distributed on the primary market. There is no secondary market for savings notes, i.e. the owner of savings notes cannot transfer them to other persons.
The commission fee of 0.1% is charged upon buying Lithuanian Government savings notes. The safekeeping of savings notes is free of charge. Standard bank fees will be applied if cashing out proceeds from buyout of savings notes (can be found here).
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