YrityskorkoStructured credit loan
Targeting above market average returns
Yrityskorko structured credit loan provides the same type of investment opportunity as bonds issued by companies. By investing in the instrument, you take on the reference companies’ credit risk, for which you are compensated in the form of high interest.
Diversify between asset classes
Structured credit loan is an appropriate savings and investment solution when you want to diversify away from the stock market. The yield of structured credit loan is not dependent on the stock market.
Products are only available for a limited time
Structured investment products have a specific subscription period. The subscription period is typically 1–2 months.
With Yrityskorko structured credit loan, you seek the same benefits as with bond investments
Yrityskorko structured credit loan is a good savings and investment solution in case you want to accept more risk than by investing in investment or savings bonds. It provides the same kind of investment opportunity as bonds issued by companies. Because the yield of structured credit loan is not dependent on the stock market, it offers a way for seeking interest returns in all market situations. Structured credit loan provides valuable diversification of asset classes for your portfolio, similarly as with bond investments.
Structured credit loan is an investment in companies’ credit risk
Markets price in credit risk for companies according to how they are expected to cope with their financial obligations. The riskier the company is, the more you can require return on your investment. Structured credit loan is a product where you invest in the credit risk of a reference company. There can be one or several reference companies. In most cases, we use international credit risk indexes that list the credit risk of at least tens of large companies.
If the reference company avoids any major financial hardship during the term to maturity, you will get a return above the market rate. If, for example, the company defaults on payments or goes bankrupt during the term to maturity, you will lose part of your investment. Interest will then be paid only on the remaining capital. When the underlying asset is an index containing tens of reference companies, your credit risk remains moderate.
We aim to select corporate fixed-income reference companies in such a way that the risk involved is moderate but the expected yield is attractive.
The (structured) bond product is issued by OP Corporate Bank plc. Group member banks, in addition to the OP Corporate Bank, can act as subscription agents.
More information is available from OP Corporate Bank plc's bond programme prospectus.