Through a regulated intermediary
Individuals normally buy Eurobonds through a bank, private bank or broker that has access to the bond market and holds the bonds in custody. The intermediary should be authorised by the financial regulator in your country.
Minimum denominations
Many Eurobonds have minimum denominations of 100,000 or 200,000 euros or dollars, which puts them out of reach for many individuals and is partly designed to limit them to professional investors. Some issues, particularly older ones and some emerging-market bonds, have denominations of 1,000 or 2,000.
Funds and ETFs
A simpler route for most people is a bond fund or exchange-traded fund that holds a diversified portfolio of international bonds. Funds have ongoing costs, and their value goes up and down: unlike a single bond, a fund has no maturity date at which you get par back.
Checks before investing
- Confirm the firm on your national regulator's public register, such as the FCA Register in the UK.
- Read the key information document and the bond's prospectus or final terms.
- Check the ISIN, issuer, ranking, currency, maturity and any call features.
- Understand all fees, including custody fees and the dealer's spread.
- Consider whether you can hold until maturity and what happens if you need to sell earlier.
- Make sure the investment fits your circumstances; consider independent, regulated advice.