Debt Instrument Products

Debt instruments are products that allow the issuer to raise funds by borrowing from investors, with returns based on a predetermined interest rate or repayment at maturity.

These products can have fixed or variable yields and can be used to provide regular income in a portfolio or generate returns depending on the level of risk.

Treasury Bills and Government Bonds are government-issued debt securities by the Republic of Türkiye’s Ministry of Treasury and Finance in the domestic market.
Treasury Bills have a maturity of less than 1 year, while Government Bonds have a maturity of more than 1 year. They are based on the nominal value specified at the payment date and can be liquidated before maturity depending on the prevailing market conditions on the transaction day. They can be issued at a discount or with fixed or floating rate coupon payments.

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Eurobonds are long-term debt instruments traded in international markets and issued in foreign currencies by the Republic of Türkiye Ministry of Treasury and Finance or private sector entities.
Typically, they are issued in US Dollars or Euros. US Dollar-denominated Eurobonds make coupon payments every 6 months, while Euro-denominated Eurobonds make coupon payments annually.

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Private Sector Debt Instruments are issued by banks or corporations to meet their financing needs, either at a discount or with coupon payments.

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A Repo involves the sale of a fixed-income security, such as Treasury Bills or Government Bonds, with a commitment to repurchase at the end of a specified period.

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