Promissory note programmes expand the range of investment opportunities that the bank can offer its clients.
A promissory note is a short-term security. For investors, investing into short-term securities is an attractive alternative to term deposits. The investor opens up to the issuer’s risk and collects substantially higher interest income.
The bank arranges communication and all necessary administration – we organise the issuance and subsequent handling of the promissory note, including safekeeping, yield calculation, and payout.
A bond is a security based on which the issuer (debtor) undertakes to pay back the principal and, in most cases, even the interest income paid out in regular intervals. A bond is always traded for the price of the so-called cover and the aliquot income, or interest, accumulated from the date of the last payment of the coupon.
Would you like to know more?
Contact us
