Fixed Income Securities

A fixed-income security is an investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity.

Unlike a variable-income security, where payments change based on some underlying measure such as short-term interest rates, the payments of a fixed-income security are known in advance.

Turkish Treasury Bill and Government Bonds

Treasury Bills and Government Bonds are government securities issued by the Treasury of the Republic of Turkey, with a term of shorter than one year and with a term of one year and longer, respectively.

These promissory notes can also be issued in foreign currency as well. Coupon government bonds may be indexed to a foreign currency, inflation rate or the bidding interests of the Treasury Bills.

Domestic Corporate Bonds

Private sector bonds are debt securities issued in Turkey by banks and other joint-stock companies.

Private sector debt securities pay higher returns than do government debt securities but those who invest in them bear all the risk of the issuer’s defaulting.