Identifier: C2T6L2 | Revision: 2026-10-26

Decision and objectives

Two certificates can share a participation-finance structure and still carry different credit and currency risks. Compare sovereign-linked and corporate structures by the actual payment obligation, then compare TRY and foreign-currency cash in the investor's spending currency. Do not use issuer ownership or a state-related name as a substitute for an explicit sovereign obligation.

Objectives: Separate structure, obligor and currency; Calculate base-currency proceeds; Compare cash schedules without assuming equal guarantees.

Prerequisites: C2T6L1.

Mechanics

A sovereign transaction can use a Treasury-established asset leasing company, while a corporate transaction can use a separate VKŞ and operating obligor. The certificate issuer and economic payment obligor need not be the same entity. Identify any contractual guarantee, purchase commitment and its limitations. A currency denomination changes which money is owed, not whether it will be paid.

Domestic and international issuance can also change governing documents, custody chain, distribution restrictions and denominations. The lesson compares Turkish access routes; it does not transfer foreign investor compensation or tax rules to a Turkish holder.

Price and return drivers

To compare a fixed horizon, translate every payment using an explicit FX assumption and include its timing. For a single final cash amount, TRY value = foreign-currency cash × TRY per foreign-currency unit. For interim distributions converted at receipt, use each receipt's own FX rate. A higher foreign-currency distribution rate cannot be compared directly with a TRY rate without the currency scenario and credit comparison.

Worked case

Hypothetical one-year certificates with all distributions at year-end, full performance, no fees or tax. TRY sovereign-linked schedule: pay TRY 300,000 now, receive TRY 354,000 in one year, return 18%. Corporate USD schedule: pay USD 10,000 using TRY 30/USD, receive USD 10,600 in one year. If final FX is TRY 33/USD, TRY receipts = 10,600×33 = TRY 349,800; return = 16.6%. The USD schedule has a 6% foreign-currency return, yet is below the TRY schedule under this FX assumption.

Equal final TRY receipts occur at FX = 354,000 / 10,600 = TRY 33.396226/USD, excluding any timing or cost differences. This break-even rate is a scenario boundary, not an exchange-rate forecast. The two obligations still need independent credit analysis.

Adverse case

At final FX TRY 27/USD, the USD certificate yields TRY 286,200, a −4.6% TRY return despite full USD payment. Under a separate credit stress, only USD 8,000 is recovered at TRY 33/USD, producing TRY 264,000 and a −12% TRY return. Neither foreign-currency denomination nor asset linkage eliminates principal loss. Before maturity, benchmark yields, credit spreads and dealer liquidity can additionally affect exit value.

Practical use

Confirm the issuer, obligor, currency, eligible investors, denomination, maturity, distribution dates, recourse and any guarantee from issue-specific documents. A domestic retail public offer and a privately placed international certificate can have different access conditions. The fictional schedules do not establish current live offerings. Request clean/dirty or accrued-rent details if applicable, settlement currency, conversion spread, custody costs and dated tax. No current tax exemption is assumed.

Decision boundaries

Choose based on the liability currency and the documented credit structure. A USD obligation may favor USD cash even when its projected TRY return looks lower; converting into TRY introduces a risk the liability does not require. A fixed TRY liability may favor predictable TRY cash. Decline when comparing the schedules requires an FX forecast the investor cannot tolerate being wrong about.

Practice and references

Exercise: hypothetical initial USD 5,000 at TRY 40/USD; final distribution plus principal USD 5,250 converted at TRY 38/USD; no costs or tax. Answer: outlay TRY 200,000; receipts TRY 199,500; return −0.25%. Positive 5% USD return did not preserve TRY value.

Takeaway: compare legal support and currency separately, then reconcile the same cash horizon.

Reference guide: lease-certificate, currency-combined-return, Obligor, Base currency.

Next: C2T6L3. Topic test: C2T6.

Primary sources (checked 2026-10-26; changing terms require a publication recheck): Borsa Istanbul Debt Securities Market products — Public Debt Instruments; Private Sector Debt Instruments; Lease Certificates; Eurobonds; HMB Public Debt Management Report 2024 — Government Debt Securities; lease certificate definitions; borrowing instruments.

Shared reference guide