Comdirect offers reverse convertible bonds
The Comdirect often offers its customers reverse convertible bonds with particularly attractive conditions, which can be concluded via the Internet. It should be noted that reverse convertibles generally offer a good return. In the current case, Comdirect Bank customers can subscribe for a reverse convertible with a yield of 6%.
Which yield does the bond offer and how long does it run?
Angeboten wird die Aktienanleihe über der Commerzbank und bietet trotz der derzeit niedrigen Zins eine gute Rendite. It is a Protect reverse convertible on BMW which has a maturity of less than one year. Customers receive a secure interest payment of 6% p.a. and have a term of 10.5 months. The investment risk is quite present but due to the Protect benefits reduced and manageable.
What risk is associated with the investment?
As with many reverse convertibles the maximum return is limited to the interest payment. The reverse convertible is subject to market influences, which can also have a negative impact on the bond value. If there are fluctuations in the share price or the interest level, it is possible that the bond will develop negatively.
Note it is possible that Commerzbank, as the issuer of the bond, may slip into insolvency. If this is the case, the subscribers of the bond suffer losses up to a total loss.
This bond can be subscribed to at Comdirect Bank with the abbreviation WKN CE4181 until 30 January 2017. It is necessary that at least EUR 1,000 per bond be invested in order for the subscription to be successful.
What are the advantages of the Comdirect custody account?
Comdirect Bank is a subsidiary of Commerzbank. The bank is a direct bank based in Quickborn near Hamburg. It should be noted that Comdirect Bank’s products can be perceived online without any problems. The bank’s portfolio is now more than extensive and is characterised by the fact that, due to online account management, it is in some cases considerably cheaper than is the case with many branch banks.
Customers of Comdirect Bank can use Commerzbank ATMs to withdraw cash without having to pay fees. It is also possible for Comdirect Bank customers to use the ATMs of Commerzbank’s partner institutions.
With Comdirect Bank, customers can open a free checking account and manage it online. Holders of a free current account can also use the custody account without any account management fees. It is possible without any problems to start trading in securities with the custody account. In the first 6 months after the account opening the traders can even trade with particularly low fees, since the order commissions are reduced by 50%.