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Assets traded on AIAF

The assets listed and traded on AIAF meet the needs of the issuers with regard to funding requirements, the various balance sheet structures and terms as well as investors’ appetite for this type of asset.

Short term
Commercial paper

These are assets with an implied yield and issued at a discount.

Medium and long term
Bonds and Debentures

These are basically the same: a debt investment in which an investor loans money to an entity (corporate or government) that borrows the funds for a defined period of time at a fixed interest rate.

These are generally fixed income assets maturing in two or more years. Bond maturities are generally less than five years while debentures mature later (however, this is not always the case).

The interest rates or coupons can be fixed or linked to an economic variable or index. Interest on bonds is usually paid annually or less.

Zero coupon bonds are different. They do not pay interest periodically but are traded at a heavy discount, rendering profit at maturity when the bond is redeemed for its full face value.

Matador bonds

Matador bonds are peseta-denominated bonds or debentures issued on the Spanish market by non-resident entities. These were very popular in the past but their weight has decreased as there have been no new issues since the introduction of the euro.

Covered bonds

Cédulas hipotecarias or covered bonds are securities issued by official credit entities, savings banks, private banks, mortgage lenders and corporate lending entities. They differ from other Fixed Income assets in the guarantees of interest and amortisation offered as these are backed by the issuer’s mortgage portfolio. Germany boasts the largest covered bonds market ( Pfandbriefe ) where these are used to fund public works projects.


Securitisation involves repackaging a series of financial assets into an instrument which can be traded on the capital markets. Securitisation as we know it today started in the United States with mortgage-backed securities.

This process began in Spain at the beginning of the 1990s and focused exclusively on mortgage securitisation up until 1996.

In 1998, the range of securitised assets was extended to include commercial loans, personal loans, rents, future payment rights on toll roads and other flows which were commonly securitised in other markets such as, auto leasing, intellectual property rights, etc....


These are a new phenomenon in Spain and usually have the following characteristics:

  • The acquirer has the right to receive a fixed interest rate.
  • In the event of bankruptcy, the holders of these securities rank ahead of ordinary shareholders yet behind bond holders.
  • They are considered perpetual debt although the issuer can opt for early redemption of the full amount with maturities usually ranging from five years to the redemption date.



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