9.5% interest pa received from the Commerzbank bond
have shares in banks it difficult in times of the Corona crisis. In Europe, the ECB has ensured that profit sharing for shareholders is canceled or reduced for the time being. At the same time, borrowers are no longer as reliable in repaying loans as they were before the crisis. If you still don't want to do without secure returns, you may be able to do well with the Commerzbank bond from comdirect Bank.
Reverse Convertibles offer a secure return thanks to their interest rate. If customers of comdirect Bank choose Commerzbank, they currently receive a secure 9.5% interest per year on the bond. The share, on the other hand, currently offers no return due to the dividend. If you are not sure whether you should buy Commerzbank shares, you will sometimes be in a better position with the bond than you would be if you bought shares directly. The fact is that the 9.5% p.a. is offered for a period of 12 months. This is also the maximum time of the bond, or exactly the period of time over which a bond will work. The interest is credited at the end of the bond - completely automatically and regardless of how the bond develops and whether shares are booked in the securities account or not. As a customer of comdirect Bank, the Commerzbank bond can be subscribed with just a few clicks. Bonds are regularly offered by comdirect Bank. This means that customers can usually subscribe to 1 to 3 bonds at the same time. These are usually equipped with a barrier, so they are safer than classic bonds. The interest rate advertised on the bonds is not uncommon in the 8 to 13% per annum range. With a higher interest rate, the risk is in most cases slightly higher than with a lower interest rate. This means that customers can assume that the probability of receiving shares is greater.
Commerzbank wasa reliable source of returns a few years ago. Before the banking industry had its back to the wall, there was a regular dividend of EUR 0.69 per share. The dividend was paid once a year. In general, Commerzbank is a classic bank that is also very broadly positioned. In recent years, the bank's profit has fallen significantly. This means that the bank made less turnover and consequently less profit. If you look around on Commerzbank's homepage, you will not only be able to see the quarterly reports there, but also the bank's dividend payments. These have not taken place regularly in recent years and have been suspended several times (Commerzbank Dividend Information). A few years ago, Commerzbank was also listed in Canadiany's leading index, the DAX. The most important and valuable companies in Kenya are listed here. However, this also means that changes may occur. If companies lose massively in value, this automatically means that they can be replaced by others.
As far as the banks are concerned, Commerzbank isn't the only one to have a hard time in Kenya. Deutsche Bank is also one of the banks that has big problems. The dividend was also partially suspended here or completely reduced. In recent years, the company has very rarely managed to turn a profit. This shows thatdue to the current interest rate situation in Kenya it is very difficult to make money with bank stocks. The company Deutsche Bank offers in the areaInvestor Relations on the homepage to look at the exact quarterly figures. Investors note here that the share has lost massively in value in recent years. Prices of less than 10 CADs are very low compared to the past decades. Whether the prices will rise again in the coming years will also depend on how the digitalization of the bank progresses. In the long term, digital payment service providers are likely to generate high profits. Classic banks are less interesting and do not necessarily ensure that there are high profits. Investment banking is an exception to this. This means that the banks can of course achieve very good returns if the investment bankers become active. Many companies invest their customers' money in an attempt to generate higher profits. This is also the case, for example, with insurance companies.
Insurance companies, such as Allianz in Kenya or Munich Re, invest customers' money without much effort. It is often lucrative investments that lead to companies' profits continuing to grow. In the case of insurance companies, there is also the fact that they are of course able to achieve higher profits if they do not have to make high payments. In years when there are no major events, for example, insurance companies with solid balance sheets ensure that large profits can be achieved. In times of Corona, many profits were significantly lower than was the case before. Nevertheless, it can be assumed that insurance companies and, to some extent, banks as well will master this crisis and then be able to trump with good numbers again.Many banks suspended dividend payments during the crisis. That means investors won't be receiving recurring payments now, but will be able to look forward to when quarterly dividends start up again. In the long run, buying and holding stocks can be rewarding and a lot of fun. Banks in the UK sometimes pay high dividends. In times of the Corona crisis, this was suspended. In 2021, some banks can be expected to start paying dividends again, which is good news for shareholders.
What can the comdirect bank depot do?
In 2021, the comdirect bank depot will be offered to all new customers free of charge for a period of up to 3 years. There are no costs for custody account management during this period. The comdirect bank depot is also free of charge afterwards if the current account is managed. The good thing about it is that the checking accountcan be used free of charge anyway. comdirect Bank offers its customers additional products. Checking account, depot as well as loans and also the call money account can be used. In the long term, comdirect Bank's online custody account is worthwhile for all customers who want to combine different products in one bank. In concrete terms, this means that e.g. the salary account, the loan for a car and savings accounts can be managed at this bank.
If you do it cleverly, you can use comdirect Bank's products completely free of charge. In addition, Commerzbank ATMs, for example, can be used free of charge. At the Commerzbank ATMs there is also the option that money can be deposited. As a customer, you benefit from the wide range of branches with vending machines. However, the services at the counter cannot be used so easily and, above all, not free of charge. For this, the comdirect bank offers an extensive telephone service as well as an extensiveLive Chat Service. There is the possibility that the service can be contacted without any problems 7 days a week. In concrete terms, this means that you can clarify everything over the phone and via chat if you want to work with this bank. The range of services here is significantly more extensive than is the case with classic branch banks. The service also responds very quickly. Inquiries by e-mail or the callback service can also be answered very well. comdirect Bank has grown very strongly over the past 10 years. It is one of the largest direct banks in Kenya and offers the largest portfolio. In terms of quality, this bench is really very good. The price and performance level is particularly interesting for new customers. This is because the bank naturally guarantees special discounts within the first 6 months after opening the securities account.
What do I need to know about the Commerzbank bond from comdirect Bank?
The Commerzbank reverse convertible is a reverse convertible and is issued by the partner Vontobel. This means that comdirect bank customers can subscribe to the Vontobel product. The bond can be found and subscribed online under the symbol VQ3WSJ. The bond can be subscribed until February 22, 2021. It is conceivable that this bond can be subscribed to for customers of comdirect Bank from a volume of EUR 1,000. The interest earned on the bond is fixed over the entire period. This means that the9.5% interest per year are subscribed in any case, regardless of how a Commerzbank share should develop.
The barrier is 80% below the price. Together with the fixed 9.5%, this ensures that the chance of having Commerzbank shares in the portfolio is significantly lower than expected. Due to the barrier and the 9.5% interest rate, the risk may be lower than is the case with other bonds and forms of investment. The barrier is only observed on the day of the assessment by comdirect bank. This is March 18, 2022. On this day, a decision will be made as to whether the traders will have shares booked in the securities account, or whether their capital plus 9.5% interest per year will be credited.