Inflation-linked mortgage bonds with a 14.8 percent return over 5 years
Tatra banka's Private Banking customers who accepted an exclusive offer of floating rate mortgage bonds linked to inflation development in the eurozone have earned attractive appreciation of 14.80 percent over 5 years. This means that their savings had annual appreciation of more than 2.80 percent. Compared to the development of inflation in the eurozone with a 6.85 percent increase over the same period, clients have achieved more than double appreciation of their investments.
A floating rate mortgage bond offered clients the opportunity to earn an attractive return depending on the development of the HICP (Harmonized Index of Consumer Prices) Eurozone, excluding tobacco. The payout profile was structured so as to allow clients 100 percent uncapped upside participation in the development of the monitored inflation rate and the return of at least 14.8 percent in the event of a lower-than-expected inflation rate.
In the period from April 30, 2010 to April 30, 2015 the Private Banking clients thus appreciated their invested funds in both nominal and real terms.
The long-term objective of Tatra banka is to bring Private Banking clients investment products through which clients can profit from various market situations and opportunities as well as attractive solutions offering real appreciation above the level of inflation.
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