What is a premium/discount?

When you list an investment on the Secondary Market, you set the price as a percentage against your outstanding principal. That percentage is the premium or the discount.

• Premium – above your outstanding principal. For example, €102 for €100 of principal.
• At par – exactly your outstanding principal. €100 for €100.
• Discount – below your outstanding principal. For example, €98 for €100.

You can set a premium or a discount of up to 15%.

Setting it

You can apply one percentage to every investment in your selling list at once, or set a different percentage for each one. Either way, you see the resulting sale price before you publish the listing.

What it changes

The percentage sets what a buyer pays and how attractive your listing looks next to others. A discount can help a listing sell faster; a premium may suit a loan with a strong rate or a short remaining term. A sale is never guaranteed at any price.

You receive the full sale price – Afranga charges no fee to sell on the Secondary Market. Interest accrued up to the sale date stays with you regardless of the price you set.

As with all investments, your capital is at risk. Questions? support@afranga.com.