These offers have emerged in recent years. Related to medium, extremes of low interest rate, very low yields on corporate bonds and yields on bond bonds shorter maturities were even more negative. At that moment, clients will find alternatives and the yield of five or six percent of the year will be very attractive to them, Jack explains Jack Digna, Member of the Board of Directors and Sales Director of Conseq Investment Management.
Unfortunately, many investors are unfortunately unable to evaluate the issuer’s credit quality, that is, the ability to repay the debt by the borrowing company.
Equal View of Partners’ Financial Adviser Danila Marque: The bond is a debit note that, when the issuer collapses, is a piece of paper. In any event, corporate bonds do not guarantee how often they hear. If you do not know or understand your company and your office, never buy it.
If it appears that the company is unable to reach its liabilities, the loss is clearly borne by the investor. Martyrius then has to pay payback at least, but even in that case, where the bankruptcy remains in the firm no property at all.
Good corporate bonds
Issuing corporate bonds is a normal procedure when the company pays off to the bank. If a company offers bonds on publicly traded exchanges, it must submit and gradually submit all information about its hospodaen. As a result, such companies cannot promise super-attractive returns.
Also important is the method of selling corporate bonds. There is no exception when some corporate advisors and intermediaries who are not the client’s view of his commission.
JakmileAs soon as the performance of the economy deteriorates, it is clear that the timeframe we are now experiencing is absolutely certain recession, many of those companies that offer bonds will be in trouble with investors with high losses, explain Jack Digna.
Non-transparent corporate bonds are usually offered by vendors outside of regulated investment intermediaries. They can only offer prospectus bonds approved by the Czech National Bank (CNB), which requires a certain quality of minimum preparation. Nevertheless, according to experts, or the sanction of the CNB prospectus, there is absolutely nothing about the credit quality of the bond issuer.
How to choose a corporate bond
The analysis of the risks associated with the purchase of a particular corporate bond is mostly relatively contained. Therefore, buying such a bond should be done only by one who has such a material and is able to evaluate it, or by trusting someone who has done so za nj.
And even in this case, experts recommend investing a small amount of the investment portfolio in such bonds, up to 5% per issuer.
Another thing is that a common investor often cannot even buy a quality corporate bond, because one bond may have a nominal value of even a million crowns, or dve, Hard Jack Digna. According to it, bond-pool funds can be used to provide a thorough orientation in relation to the risks they undertake.