The debt securities section of the Stock Exchange is the trading place of debt
securities. Government bonds, treasury bills, corporate bonds and mortgage bonds
are traded on this segment.
Debt securities
The Exchange offers secondary market for securities issued by the government.
Government Debt Management Agency (GDMA), the issuer of government debt securities
introduces the majority of government bonds and treasury bills denominated in
HUF to exchange trading.
Government bonds
All publicly issued government bond is available for investors in exchange trading
that is denominated in HUF. On the short end of the maturity spectrum of government
bonds we can find bonds with term of 3 and 5 years, while on the longer end 10
and 15 year term government bonds are traded. The financing strategy of the Debt
Management Agency is based on fixed-rate bonds but floating-rate 5 year term bonds
are also introduced to exchange trading.
Treasury bills
Treasury bills represent the other class of exchange traded fixed income securities
issued by the government. Treasury bills are issued with discount to its face
value and their owners can claim the face value at maturity.
The exchange trading of treasury bills are supported by the primary dealer system
similarly to the government bond market.
The maturity of exchange traded treasury bills can either be 3, 6 and 12 months.
