Bond Montreal Bank 0% ( XS2057874708 ) in USD

Issuer	Montreal Bank
Market price	100 % ⇌
Country	Canada
ISIN code	XS2057874708 ( in USD )
Interest rate	0%
Maturity	07/10/2059
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Minimal amount	200 000 USD
Total amount	100 000 000 USD
Detailed description	Bank of Montreal (BMO) is a major Canadian multinational bank offering a wide range of financial services including personal and commercial banking, wealth management, and investment banking, operating across North America and internationally. A financial instrument of interest in the current fixed-income landscape is the obligation identified by ISIN XS2057874708, issued by the Bank of Montreal. This Canadian-domiciled financial institution, established in 1817, stands as one of North America's leading diversified financial services providers, offering a comprehensive suite of personal and commercial banking, wealth management, and capital markets services across the globe, underlining its robust credit profile and significant market presence. The bond, denominated in US Dollars (USD), is presently trading at 100% of its par value and represents a substantial issuance with a total aggregate principal amount of USD 100,000,000. It targets institutional or sophisticated investors, given its minimum purchase size set at USD 200,000. This long-dated instrument features a maturity date of October 7, 2059, providing a significant duration profile. A notable characteristic is its reported current interest rate of 0%, coupled with a semi-annual payment frequency. While a 0% coupon rate on a bond trading at par for such an extended maturity typically indicates a zero-yield scenario, which would be highly unconventional for a standalone investment, the semi-annual payment frequency suggests that this may be a floating-rate note where the current coupon has reset to zero based on its underlying benchmark. This structure implies that while there are no interest payments currently, the bond is designed to make payments twice a year, allowing for potential future coupon adjustments based on market conditions. Investors considering this instrument would need to thoroughly evaluate the precise terms governing its interest rate mechanism and its long-term return potential.