Advantages for You
- Safe securities
- Guaranteed yield
- Guaranteed return of principal
- For details of fees please refer to our List of Fees
- Our advisors will be glad to inform you about the detailed price conditions
Mortgage bonds are suitable for both larger and smaller investors. They are bonds whose nominal value, including interest, is fully covered by receivables from mortgages. And those are secured by a lien on objectively appraised real estate. Mortgage bonds are very safe securities. Sberbank CZ issues mortgage bonds with a fixed or variable coupon.
Mortgage bonds with a fixed coupon are primarily intended for investors who prefer a pre-determined guaranteed yield and the guaranteed return of the principal, and have an investment time frame to maturity. Mortgage bonds with a variable coupon guarantee a pre-determined percentage bonus over the market interest rate, allowing the client to participate in interest rate growth.
Mortgage bonds issued by Sberbank CZ, a.s. are:
- Attractive in terms of yield. By purchasing mortgage bonds, the investor can deposit money for a specific period of time with a yield that is known up front. With variable bonds, the client gets a certain pre-determined yield over the referential market interest rate.
- Safe for investors, which is guaranteed primarily by the fact that mortgage bonds are covered by receivables from mortgages that are secured by real estate collateral. The issuing of mortgage bonds is permitted by the Czech National Bank, which also continuously monitors the quality of mortgage bond coverage. If a mortgage is not repaid, the mortgage bank has a priority right to satisfaction from the collateral, putting it ahead of other creditors. The payment of the yield and principal in the set amount and at the set dates is guaranteed by Sberbank CZ, a.s.
- Freely transferable. A mortgage-bond purchase can be considered a long-term investment. In spite of that, the investor can have the bonds redeemed at any time at any Sberbank CZ, a.s., branch. The purchase prices are updated daily, in accordance with the announced interest rate and situation on the capital market.
Information about client protection in investing.
The enhanced client-protection provisions based on the European Parliament and the Council Directive No. 2014/65/EU on markets in financial instruments - MiFID II apply to this product.