BONDS

 

 

Government Debt Securities payable in Turkish Lira and foreign currency, Private Sector Bonds, Revenue-Indexed Bonds, Liquidity Bills issued by CBRT are traded on the ISE Bonds and Bills Market Outright Purchases and Sales Market.
 
The prices of bonds and bills traded on the ISE Bonds and Bills market are determined in a competitive environment on an organized market. ISE markets permit conversion of bonds and bills to cash at any time desired.

Bills
Bills are securities with a term less than a year which are offered at a discount and are payable by the issuer at nominal value at the end of the stipulated term. Bills with a term less than a year issued by the Undersecretariat of Treasury are called Treasury Bills. 

Bonds
Bonds are debt securities issued by the Government and/or joint stock partnerships with a term more than 1 year in order to borrow funds provided that each bond bears the same nominal value and the same wording. These are fixed income securities which accrue interest in regular intervals, giving their holders the rights of a creditor. Bonds with a term more than a year issued by the Undersecretariat of Treasury are called Government Bonds.

Government Debt Securities (GDS)
GDS, a general term for treasury bills and government bonds, means debt securities issued by the Undersecretariat of Treasury for the domestic market. GDSs can be classified differently having regard to their terms, whether they have coupons or not, types of interest and the currencies in which they are issued.

GDSs with a term equal to 1 year or more are called government bonds while GDS’s with a term less than 1 year are called treasury bills.

Securities without a coupon are discounted securities and the interest revenue of the investor holding the security until the end of its term will be the difference between the nominal value attained by the security at maturity and its selling price.    Securities without a coupon are fixed-income securities.  Securities with a coupon entitle the investor to receive coupon payment in certain terms (interest payment) and may be subject to a flat or a floating interest.

GDSs may be issued in TRY and foreign currencies, or indexed to foreign currencies. While the principal and interest payments of GDSs issued in a foreign currency are effected in the foreign currency, the payments of GDSs indexed to a foreign currency are effected in TRY over the rate of exchange determined.

Private Sector Bonds
Private sector bonds are debt instruments issued by joint stock companies. Their terms may be determined independently - not to be less than two years - and they may be issued subject to a flat or a floating interest. Coupon payments may be once, twice or 4 times a year.

Eurobonds
Eurobonds are issued in a currency other than the currency of the issuing country or institution and are issued by a bank and/or syndicate through an international syndicate concurrently in more than one countries and is generally registered to bearer.
 
Eurobonds are called "yankee" if issued in US market, “bulldog” if issued in UK market, and “samurai" if issued in Japanese market.