OLOs are :
- medium-, long- or very long-term securities;
- denominated in euro;
- issued in different ways :
- by auctions based on the prices;
- by syndication (e.g.: when issuing the first tranche of a new line).
- dematerialized securities held in a securities account system to which CLEARSTREAM and EUROCLEAR have access;
- issued in tranches forming a line;
- having an identical nominal interest rate and redemption date within a line;
- fungible within each line (i.e. giving subscribers and issuer the same rights and obligations);
- fixed rate securities, but for two lines - the FRN ones - which present a floating rate linked to the EURIBOR 3 month.
WHO SHOULD INVEST IN OLOS ?
Being standardised securities, OLOs are well suited for the professional investor looking for a liquid and safe investment. Private investors may also have an interest in buying OLOs and they can do so through their financial institution.
WHAT IS THE ROLE OF THE PRIMARY DEALERS ?
The placement of OLOs and their liquidity on the secondary market is ensured by the Primary Dealers.
Only Primary Dealers are entitled to participate in auctions and syndications.