Tailor-made fixed-income solutions for discerning businesses.

Fixed income is an investment model based on loans in which the investor lends money to a public or private entity in exchange for a return. When you invest in these products, you know beforehand the yield you will receive, provided you keep the investment until maturity.

The first classification we can make is based on the issuer. In this way, we can differentiate between public fixed income and private fixed income.

• Public fixed income: issued by the Spanish state, the Autonomous Communities and public administrations or bodies, with the aim of financing their structural expenditure and supplementing revenue from taxes. This category includes treasury bills, bonds and state debentures.
• Private fixed income: issued by private companies with the aim of raising funds to undertake projects or increase capital. This category includes corporate promissory notes, corporate bonds and debentures, subordinated debentures, mortgage-backed securities, mortgage-covered bonds and regional bonds.

If we consider the maturity, we can distinguish between short-term and medium- or long-term issuances:

• Short-term investments: mainly treasury bills and commercial papers, with terms ranging from 3 months to 18 months. They are known for having high liquidity.
• Medium- and long-term investments: bonds and debentures from both private companies and government entities. Maturity, in this case, exceeds two years, and they offer a higher potential return than short-term investments, as well as greater associated risk.

• Fixed income with explicit yield: commonly known as interest payments or coupon payments. The frequency of these payments varies according to the terms of each issuance. Coupons are usually annual, but may also be quarterly or semi-annual.
• Implicit yield (or zero-coupon): profitability is determined by the difference between the price the investor pays for the product and the price at the time of amortisation. Interest is paid at the time of amortisation.

Fixed income carries less risk than equity, although depending on the issuance and its characteristics, it may involve lower or higher risk.

The characteristics of the issuances are specified in the issuance prospectus.

Let's take a look at the following risks:

• Issuer risk: the risk that the issuer may not return the principal to its investors. There are different credit rating agencies that assess this type of risk, for both public and private fixed income securities.
• Interest rate risk: the risk of change in the price of fixed income as interest rates rise or fall. Changes in interest rates cause an inverse change in the price of fixed income assets. When interest rates rise, the price of fixed income securities falls, and vice versa. The price of fixed income securities depends largely on changes in interest rates, market conditions and general economic conditions.
• Liquidity risk: measures the ease of selling fixed income securities in the secondary market.

To begin trading in the national public debt market with Bankinter, the minimum amount required is €10,000. This applies to treasury bills, bonds, and government debentures.

The main difference lies in the term of the investment. Treasury bills are short-term assets ranging from 3 to 12 months and operate on a discount basis. Bonds and debentures are designed for the medium and long term, with maturities ranging from 3 to 50 years.

Represents the additional cost or extra interest that a country must pay to obtain financing compared to another country used as a security benchmark. In the European market, Germany serves as the main benchmark, and the greater the spread, the higher the associated risk for that country.

When operating outside Spain, you should consider the credit quality of the issuer and the possible risk of currency exchange. If the foreign currency fluctuates against the euro, this could directly affect the final return on your investment.

The process is very simple, as you only need to open a current account or a Broker Account with no maintenance fees. Once it is active, you can open your brokerage account to manage and deposit all your fixed-income securities.

This service is aimed at professional investors who require personalised attention, or who already have some experience in investing in fixed-income securities.

It offers exclusive advantages such as direct access to the treasury trading desk and the opportunity to trade mid-market promissory notes or bespoke structured bonds. Please ask at your branch for information on the requirements.

You have two very simple options: You can invest through our Bankinter Broker, using the fixed income search tool, or participate directly in the auctions if you are a customer, with the support of your relationship manager.

They are low-risk government bills with maturities of 3, 6, 9 and 12 months. The process is simple: you invest an amount and, at the end, you receive that amount plus the interest generated.

These are assets for longer-term investment: bonds usually mature in 3 or 5 years, while debentures can reach maturities of 10, 15, 30 or even 50 years. They pay you interest.

Like other savings products, the return generated is subject to the current tax regulations for capital income. Consult your financial advisor to see how these rules apply to your particular situation.

Yes! You have access to liquidity thanks to the secondary market, where you can sell your fixed income securities after their issuance if you need to recover your principal before maturity. Public debt issuances are generally very liquid, but depending on the country in which you invest, this liquidity may vary.

Are there other fixed-income investment options apart from public debt?

Yes, there are many options for investing in national and international companies across different sectors through the bonds they issue. With our fixed income search tool, you can find different options. Always remember to check the details of the issuance to ensure it matches your risk tolerance.

According to the prevailing legislation (MiFIR, EMIR, SFTR), legal entities and similar organisations are required to hold a valid LEI code in order to operate and maintain positions in financial market instruments (equity, fixed income, derivatives, ETFs, currency forwards, currency hedging) and this applies to spot transactions, credit transactions (purchase and sales on credit of equity), loan of securities, transactions with repurchase agreements (simultaneous and repo), discretionary portfolio management, and as long as an open position is maintained.

Please note that the renewal requires several days of processing, so it is advisable to request it in advance. Once the LEI code has expired, it will not be possible to trade in the affected instruments until the renewal is completed.

If you have arranged for Bankinter to manage the obtaining and renewal of your LEI, the renewal will be carried out automatically.

If you do not have this service, you can request it from Bankinter at any time, and through your branch or manager, we will take care of renewing it automatically.