Raiffeisen Bonds: experience?

Investing / Portfolios
1

Anyone bought bonds from them?
https://www.raiffeisen.ch/lugano/de/privatkunden/anlegen/downloads/nachrangige-additional-tier-1-anleihen.html

I wonder why they emit bonds and at that price.

2

These are not regular bonds. It is “almost-equity” (quasi-fonds-propres). More risk = more rewards

3

It’s a perpetual bond: normally, you never get the principal back.
If the rate stays at 2.25% (see the reset rules) you have a payback after 44.44 years.

4

I thought I’ve read you can get your money back.

5

In which place (in the prospectus) did you find this?

7

I read it wrong. Raiffeisen has the right (with FINMA’s blessing) to stop it.

Also:

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image699×75 5.05 KB

That sentence is uhm
weird.

1 Like
9

I’m not an expert on those things, also I keep readin Saron as Sauron
 ahahah
Anyway that sentence in italian is weirder. The termination rules are fixed. It sounds like “i can’t believe it’s not butter”. They use the word “termination” but there in fact not a termination possiblity.

1 Like
10

Neither am I. So essentially I lend money to the bank, for an indefinite period of time, and under conditions that they unilaterally get to define? :thinking:

What does it say in italian?

11

but you still have to declare the payment and pay income taxes on it.

The coupon is splitted between an option premium and an interest payment.

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The 1.52% is tax-free while the 0.73% should be reported for income taxes.