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What is a plain vanilla bond, a benchmark bond, and a structured product?

April 26, 2017benchmark Bond plain Product structured Vanilla

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What is a plain vanilla bond, a benchmark bond, and a structured product?

1 Answer

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10 Posted

Benchmark bonds are large volume issues with standard features such as fixed interest rate coupons and redemption only at final maturity (so-called plain vanilla transactions). The Bank has built up large size issues all across the yield curves in EUR, GBP and USD. Structured issues are characterised by unforeseeable coupon and/or redemption amounts (however, issues linked to standard interest rate indices like EURIBOR are not considered structured issues).