Russia’s second largest bank - Issuing Gold Bonds - More Paper gold!!! new instrument every damn day

Investment arm of Russia’s second largest bank – VTB Capital – will start issuing bonds tied to gold price. The new instrument enters Russia just when global downturn makes gold increasingly attractive.

­The new so–called ‘gold bonds’ provide for 3 fixed coupons – 0.1% each – with the yield to maturity depending on the gold price dynamics, Vedomosti daily reports. The Gold price on November 26 – the day when the placement is set to kick off – will be taken as the base to calculate gold growth. Overall, the new bonds can create up to annualized 21.3% yield for investors.

[link to rt.com]