EXANTE offers a wide selection of bonds, from liquid corporate and government bonds, exchange-traded, and OTC, to exclusive private placements in developed and emerging markets.
Understanding Bonds
In essence, a bond functions as a loan. When you purchase a bond, you're essentially lending money to an entity, such as a government, municipality, or corporation. In return, the issuer pledges to repay the borrowed amount along with interest. This interest is paid out according to a predetermined schedule, typically semi-annually, but sometimes annually or quarterly.
Bonds are purchased for a specific sum and held for a defined period. During this holding period, you receive regular interest payments. Upon reaching the bond's maturity date, you receive the bond's face value back.
Profiting from Bonds
There are two primary avenues for generating returns from bonds:
Interest Payments: Most bonds offer regular interest payments throughout their term. The majority of bonds have a fixed interest rate, while some have floating rates that adjust over time.
Capital Gains: You can potentially sell a bond before its maturity date at a price higher than your purchase price, realizing a capital gain.
Trading Bonds on EXANTE
EXANTE provides access to a wide selection of bonds, some directly tradable on our platform and others available through our dedicated team at [email protected].
Electronic Bonds: Bonds listed in the "Electronic" folder on the platform can be traded directly with real-time pricing and swift execution.
Fractional: Bonds in the “Fractional” folder can be bought in parts (fractions) directly from the trading platform. The minimum order value for them is 100 EUR, and the minimum lot is 100.
OTC Bonds: Bonds in the "OTC" folder can be ordered through the platform, but execution is handled manually by our Trade Desk, potentially leading to longer processing times. Prices for OTC bonds are indicative, and we recommend contacting [email protected] for precise quotes before placing an order.
Structured note - combines a bond or debt security with a derivative, designed to offer customized returns based on the performance of an underlying asset, index, or group of assets.
Sukuk - is an Islamic financial certificate, similar to a bond, that complies with Sharia law, which prohibits charging or paying interest. Instead of interest, sukuk holders receive a share of the profits generated by the asset or project that the sukuk funds.
Placing Bond Orders via Email
To trade any bond, you can send an email to [email protected]. Ensure the email is sent from your authorized email address or forwarded by your manager with your request included.
What is the minimal order size to buy bonds through EXANTE?
Unless otherwise specified by the bond issuer, the minimum order size is $10,000, except for the bonds in the “Fractional” folder. A minimum fee of 50 USD applies per manually executed deal (not applicable to bonds traded from the “Electronic” folder on the trading platform).
What are the fees for trading bonds?
Trading fee: 0.09% of the deal value
Minimum fee for manually executed deals: 50 USD per deal
Custody fee: 0.3% annually (viewable in Transaction reports as "Custody Fee")
Where can I see the maturity date?
The maturity date is visible in your portfolio within your Client’s Area and in the Instrument Info section on the trading platform.
How do I understand how much interest I will receive when receiving coupon payments?
Coupon payments and their percentages are determined by the issuer. Detailed information can be found on the issuer's official website, which will be available in the section “Instrument Info” on our trading platform.
The coupon rate is also in the instrument’s name. In the screenshot, “4 1/2” means that the bond pays an annual interest rate of 4.5%.
Instrument info - Issuer Profile
Where is Coupon income displayed?
Coupon income is visible in your transaction reports under the operation type "Coupon payment."
When does the maturity of the bonds on the Exante side take place?
When bonds reach their maturity date, they are typically redeemed two business days later. So, if your bond matures on a Monday, the funds from the redemption will usually be credited to your account by Wednesday (assuming no holidays). This process is known as "T+2," meaning transaction date plus two business days.
You'll find the corresponding payment reflected in your transaction reports and within the 'Transactions' section of your Client's Area, categorized under the transaction type 'Exercise'.
Bond Screener
EXANTE's Trading Platform features a powerful Bond Screener tool, enabling you to efficiently filter and select bonds that align with your investment criteria from the extensive range of instruments available.
You can learn more about the functionality of Bond Screener in our article Bond Screener.