Tahvil nedir?(EUROBOND/TEMİNAT/İPOTEK) - YouTube

- Today I'm starting a new video series. - In this series, I will explain

what words that are used frequently in the financial world mean and what they will do for our financial future

. - First of all , let's start with the BOND, which is

the backbone of the entire economy . - What is a bond? and what types of bonds exist

- A bond is actually a debt. - When you buy a bond, you make

a loan to the person selling the bond . - In return for your savings or capital,

the person you lend will also make a payment to you. - This is called coupon payments.

- This name comes from the old days when bonds were issued in writing and had coupons around

. - When the time came, the bond owner would cut these coupons, take

them to the bank or the debtor institution and receive the coupon payment.

- Now, everything has become digital, but this coupon name remains.

- Bonds usually have certain fixed coupon payments.

- In other words, FIXED INCOME, they are under the FIXED INCOME asset section.

- For example, when you buy a $100 bond with a 10% annual rate of coupon payment

every 6 months, you give $100 and receive a coupon payment every 6 months

. - At the end of the 1st year in total, you will get $10 coupon payment

and your $100 principal money back.

- The prices of bonds and their yields are inversely proportional.

- The reason is very simple: - A $100 bond pays $10.

- Coupon payout drops to 8.3% when its price goes up to $120.

That is, the yield of the bond is inversely proportional to its price.

- The cheaper you buy the bond, the higher the return will be.

- You can also think of it like this: - Like a stock that pays

a fixed dividend: - If a $200 stock pays a $7 dividend, the dividend here is

3.5% - If you buy the stock for $100, it's 7% for

a fixed $7 dividend becomes the dividend rate.

- In other words, it works similarly to bonds. - The important point here is that most of

these returns are pre-tax returns. - Depending on the type of bond you buy, you

may have to pay income tax at certain rates.

- Do n't forget to check how much tax you have to pay

on your return before you buy any bonds for it.

- Now that we know roughly what a bond is.

- Let's come to the types of bonds. - One of the safest bonds in the world right now is the

American treasury bonds. This is because America is the reserve currency

. - At the same time, since America borrows in its own currency

, it is certain that you will get paid back on your bonds, the real

question is what will be the return after inflation is adjusted?

- But let's talk about this in the risks section. - Another type of bond is EUROBOND.

- Eurobonds are bond instruments issued by countries.

- They can borrow in different currencies with EUROBOND.

- In other words , there is no such thing as a EUROBOND Bond issuing country that borrows in euros

, it can also borrow in Yen or Dollars, even if the name is the same.

- A little interesting information: - The name of the eurobonds issued by the

countries in the British market is "bulldog".

- Another form of borrowing DEBENTURE STOCK'S

- Although these are translated into Turkish as bonds, they actually have different meanings.

- Debenture stock's is the name of the loan given to a private or public company.

- This loan can be given with variable rate interest or fixed rate interest.

- Generally, in this type of debt, the lending institution or bank

will put a guarantee on certain goods of the firm . - This is called fixed charge.

- In other words, the company puts a mortgage on something that the company owns, such as a

car, real estate, machinery, in the face of the debt it gives .

- Another type of debenture stock is floating charge.

- This means that: - The DEBT institution has placed a general guarantee on

certain assets of the firm . - But there is no mortgage on a specific property . - That is, if I own

30 real estates as the owner of the company here . - 10 of them can be collateralized.

- But I can sell the 10 assets that are covered by this guarantee and

distribute the guarantees on the remaining

20 real estates. - In such a case, the lending institution should follow the company well

. Because when the number of real estate of the company falls below a certain

value, the money that it can receive indirectly in case of non-payment of its debt is

also at risk. - To prevent this, the lender can convert the

debt: - From floating charge to fixed rate debenture

. - Thus , it mortgages the debt type on a certain asset

, that is, it crisscrosses it.

- Another type of bond is Unsecured loan: - As the name suggests, the

lender has not received any collateral or mortgage in return.

- Therefore, in case the company goes bankrupt and becomes liquid, the first assets will go to the

debenture bond holders, followed by the unsecured loan holders if there is anything left over

. - This lender can naturally

lend at a higher interest rate as it takes on extra risk

. - Finally, it is SUBORDINATED DEBT, which is the type of debt that is lower

than the previous unsecured loan owner . - Generally, this type of debt is called junior,

so it is the lowest in the priority order. - In the event of any liquidation, he has

the right to claim for his money, but by the time it is his turn,

many assets will probably be distributed.

As a result, the interest rate on this type of debt is even higher.

- In summary: - Debt is actually a bond.

- Bonds are generally preferred for medium and long term borrowings longer than 1 year

. - There is a priority order in case of bankruptcy of the company according to the

mortgages and guarantees taken by the lender .

- Suppose we have a company. - We have $100 million in assets and

$ 70 million in debt. - Let a certain part of this be fixed

as $40 million debenture, and a certain part floating charge.

- Remaining $20 million unsecured loan and last $10 million subordinated.

- If we sort it as a return, the highest interest is subordinated.

- Because it's the highest risk. - Interest rates will also change

according to the risk ranking . - Here, the lowest return is debenture

, but when the firm starts to be liquidated, it has the priority order.

- Suppose this company went bankrupt. Debtors went to court and won.

- The court approved the liquidation of the firm.

- But since the economy is in trouble, the demand

for the assets of $100 million has not been anticipated, there is only an offer of around $60 million.

- In this case, all of the goods are sold. - Debenture holders receive their payment.

- Who's next? - Employees get any compensation

if they have it and their salary inside.

- Only after that comes unsecured debt and subordinated debt.

- There is probably nothing left for the owner of the subordinated debt in this math.

- And he loses his $10 million capital.

- That's why they should lend at a higher interest rate than in the reverse order of priority,

so that they can compensate for the risk they take. - Okay, a little question: Luckily,

$5 million in assets remain.

- Who's next after the subordinated debt holder?

- Waiting for your comment. - Now we have a

rough knowledge of many types of bonds ? - So, as an investor, what use is this information for

us? - First of all, if you are buying eurobonds from a country

, you should know that there is only one guarantee you receive in return, and that is the country's

promise to repay. - In other words, the country that issued the eurobond

may also be at risk of going bankrupt. That's why U.S. Treasuries are considered

the safest port in the world . - But the risk of this is that you will be

crushed under inflation due to the speed of printing money in America. - So you get the promised refund,

but if you lose it to inflation, it means nothing.

- Another important question - What good does all these types of debt

do when trying to buy a stock ? - Each company you invest in

uses a certain amount of leverage, that is, debt , to increase its income .

- It is important to know at what rates this debt is used, how guarantees are given, and in which situations these

guarantees will be triggered. - Because when there is a macro crisis, the borrower

usually has the right to call back all his debt.

- In such a case, you should be sure that the company will not go bankrupt.

- Therefore, you should examine the debt type of the company in detail.

- Often the biggest investment mistakes are caused by leverage.

- If you can figure this part out, you'll most likely be able to curb your potential loss

. - Finally, let me give you a little extra information:

- Since bondholders do not share in profitability unlike shareholders,

their priority is the payment of their debts and the value of their assets.

That is, they have incentives to evaluate cash flow and the market value of their assets more objectively than

most investors . - How this information can be useful to you: - For example

, when investing in a real estate company

, who can show you the value of real estate in the most objective way.

- Debt holders. - Collaterals placed by debt holders

can be valuable information for asset valuation.

- Please don't forget to subscribe and like the video, see you soon.