How to Buy the Arbitrage Investment AG Corporate Bond in Ireland

How to Buy the Arbitrage Investment AG Corporate Bond in Ireland

In recent months, corporate bonds have regained traction as investors seek stable fixed-income opportunities amidst global market fluctuations. Among those available, the Arbitrage Investment AG corporate bond offers an attractive coupon rate of 8.25% per annum with semi-annual interest payments. For Irish investors seeking robust returns in a low-yield environment, this bond merits consideration. Below, we delve into why this particular bond stands out and provide a step-by-step buying process through local brokers.

#### Why This Bond is Interesting for Investors from Ireland

Investing in corporate bonds can diversify a portfolio and provide a steady income stream. Currently, Irish investors have alternatives such as government bonds and corporate bonds issued by domestic companies, which often yield lower rates. For instance, Irish government bonds typically yield around 1% to 2%, while other corporate options might not exceed a 5% yield. The 8.25% annual return on Arbitrage Investment AG's corporate bond presents a compelling opportunity to maximize income while maintaining lower risk relative to equities.

Moreover, the bond is issued under a CSSF-approved EU Growth Prospectus from Luxembourg, assuring investors of a stringent regulatory framework that protects their investments, while it is not directly regulated by BaFin, as the regulator only conducts passporting in this case.

#### STEP-BY-STEP BUYING PROCESS Using Local Brokers

Investing in the Arbitrage Investment AG corporate bond from Ireland is straightforward when using established brokerage firms like DeGiro, Interactive Brokers, and Davy. Below is a step-by-step guide tailored for each broker.

*1. Using DeGiro:*

- Step 1: Sign up for a DeGiro account online and complete the KYC (Know Your Customer) verification process.

- Step 2: Fund your account, ensuring a minimum balance of at least EUR 1,000, the minimum investment amount for purchasing the bond.

- Step 3: Log in to your DeGiro account and search for the bond using the WKN A4DFCS or ISIN DE000A4DFCS1 in the search bar.

- Step 4: Select the bond and proceed with purchasing by entering the desired quantity. Confirm the transaction.

- Step 5: Review your portfolio to ensure the bond is added successfully.

*2. Using Interactive Brokers:*

- Step 1: Open an account with Interactive Brokers and complete all identity verification requirements.

- Step 2: Deposit funds into your account, keeping in mind the EUR 1,000 minimum investment.

- Step 3: Access the bond market and enter ISIN DE000A4DFCS1 into the search tool.

- Step 4: Review the bond’s details, then enter the amount you wish to purchase and submit your order.

- Step 5: Verify the completed transaction in your account overview.

*3. Using Davy:*

- Step 1: Contact Davy to set up an investment account where you must undergo verification steps.

- Step 2: Fund your account with a minimum of EUR 1,000.

- Step 3: Reach out to your advisor or use Davy’s trading platform to search for the bond using WKN A4DFCS.

- Step 4: Choose the bond, input your desired investment quantity, and confirm the purchase.

- Step 5: Regularly check your portfolio to monitor your bond investment.

#### Tax Treatment in Ireland

It’s crucial for Irish investors to be aware of tax implications when investing in corporate bonds. The Deposit Interest Retention Tax (DIRT) applies, which stands at 33% on income generated from the bond's interest payments. Ensure you factor in these taxes when calculating your net returns from the Arbitrage Investment AG corporate bond. However, as interest from corporate bonds might be subject to different regimes in some circumstances, consulting with a financial advisor or tax professional might be a wise move.

#### Currency Consideration

The Arbitrage Investment AG corporate bond is denominated in EUR, which is advantageous for Irish investors as they avoid foreign exchange risks. If you happen to find a bond priced in a different currency, monitor the current exchange rate closely to mitigate potential losses due to fluctuating rates. Always check currency conversion costs if converting from other currencies.

#### Bond Information

• **Minimum Investment**: EUR 1,000
• **Interest Rate**: 8.25% p.a.
• **Interest Payment Schedule**: Semi-annual payments
• **Prospectus**: CSSF-approved EU Growth Prospectus

For investors interested in acquiring the bond, don’t forget to search for WKN A4DFCS or ISIN DE000A4DFCS1 on XETRA or the Frankfurt Stock Exchange.

#### FAQ Section

Q1: What is the risk level of the Arbitrage Investment AG corporate bond?

A1: As with any investment, corporate bonds come with inherent risks. The risk level can be assessed based on the issuer's credit rating, market conditions, and economic factors. Arbitrage Investment AG's corporate bond is considered a stable investment relative to equity markets.

Q2: Can I sell this bond before the maturity date?

A2: Yes, you can sell the bond before maturity on the open market. However, the selling price may vary depending on market conditions at that time.

Q3: How does this bond compare to traditional savings accounts?

A3: Compared to traditional savings accounts, which often yield below 1% in Ireland, the bond’s 8.25% yield is significantly higher, provided you are comfortable with the inherent risks.

Q4: Is this bond eligible for any tax exemptions?

A4: As per current Irish tax guidelines, interest from corporate bonds is subject to DIRT, so it does not qualify for tax exemptions.

Q5: What happens if Arbitrage Investment AG defaults?

A5: In the event of default, bondholders may lose some or all of their investment, similar to other fixed-income products. It is advisable to assess the financial health of Arbitrage Investment AG before investing.

Conclusion

In conclusion, the Arbitrage Investment AG corporate bond represents a noteworthy opportunity for Irish investors aiming to diversify their portfolios with a fixed-income product that offers an attractive yield. By following the outlined buying process through well-known brokers like DeGiro, Interactive Brokers, and Davy, investors can easily access this corporate bond and reap potential benefits. Coupled with an understanding of tax implications and market factors, this bond could serve as a pillar of your investment strategy.

*This article is for informational purposes only and does not constitute investment advice. Investments in securities involve risks including potential loss of capital.*