Intermediation
Treasury Bills
These are certificates issued at a discount by the General Treasury Board and they are represented by annotations in your account. The nominal value of the Bill is 1000€, so the issuing price will be less than the nominal price as this is a discounted certificate. The difference between the nominal price and the actual price of the Bill represents the revenue it generates.
The Treasury issues Bills with different maturity terms: we have them at 6, 12 and 18 months.
Bonds and Obligations
These are values which the Treasury issues which mature after 2 years or more; there are specifically bonds which mature after 3 and 5 years (State Bonds) and 10, 15 and 30 years (State Obligations). They have a nominal value of 1000 €, they are paid off at the same time and they generate an annual rate of interest.
These values are usually issued through monthly auctions and by sections, thereby attaining high issue volumes which give liquidity to the issued value.
Bonds and Obligations which can be segregated from the State
These are certificates which are differentiated from traditional Bonds and Obligations as the Bond is broken down into two parts: the voucher on the one hand and the nominal value on the other, and they are quoted separately. These new values are registered in the Central Annotations Office with a specific value code and they are known as "strips".
Business Promissory Notes
Promissory notes are certificates issued at a discount by companies which mature in under 18 months. There are two issuing modalities:
- Issues by programmes: a company putting the promissory notes into circulation in the market by means of usual issuing series. This type of distribution is done by companies with a high degree of solvency. The promissory notes in the series are issued by means of periodical auctions, the nominal values are usually small and distributions are intended for private investors.
- Custom made: issuing: these promissory notes are issued under an issuing contract agreed between the issuer and the investor. A specific interest rate is set for a certain amount of promissory notes.
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