Owning loan securities allows gaining higher (as compared with deposits) and more stable (as compared with stocks) revenues. Each loan security has its nominal cost, income rate (from 8 to 18%) and validity period (from 1 to 30 years). Whenever purchasing a loan security the buyer pays a sum in compliance with its nominal cost and hence an annual profit equal to income rate during its validity period is obtained. Pay off on income rate usually is implemented twice in a year. Reimbursement of invested funds for purchased loan securities (in compliance with their nominal cost) takes place upon the completion of its validity period or through early recalling, if it is stipulated in purchase conditions. Loan securities can have variable income rate as well as a fixed rate, conditioned with early pay off (or recalling) and with a definite validity period. In case of necessity of preterm reimbursement of a loan security’s funds (its sale), the income rate remains and is charged per each day.

On our site you can view:

Ratings of banks: Investments in circulating notes
and
Ratings of banks: Investments in stocks.