By Philip Ziter - Lawyer, Russin & Vecchi With banks lowering interest rates, retail investors have shown increased appetite for corporate bonds, which offer rates ranging from 10.1 to 11.2 per cent for bonds, with maturities ranging from 12 months to five years. With rates between 1.8 and 4 percentage points higher than deposit interest rates offered by major banks, the appeal to investors is clear. Thus, there is a growing trend of companies moving from taking on bank credit to issuing private placements of bonds – with issuances often amounting to several times the equity of the businesses. … [Read more...] about Government urges caution on corporate bond risks
Finra trace corporate bond data
Corporate bond activity welcome as market shocks persist unabated
The corporate bond market has adopted greater transparency following the draft revision of Decree No.163/2018/ND-CP dated December 2018. This draft is likely to take effect with the Law on Securities 2019, on January 1, 2021. Although the revisions did not take effect immediately, the State Securities Commission of Vietnam has begun to tighten issuance regulations this year as follows: … [Read more...] about Corporate bond activity welcome as market shocks persist unabated
Investors still pouring money into corporate bonds, despite warnings
Corporate bonds have higher interest rates, by 1-3 percent per annum, than bank deposit interest rates. Besides, corporate bonds are believed to have strong liquidity as distributors will commit to buy back or act as intermediaries to arrange deals when investors want to sell the bonds. … [Read more...] about Investors still pouring money into corporate bonds, despite warnings
Individual investors wary of corporate bonds
A person holds packets of Vietnamese banknotes. After warnings from the Ministry of Finance over the corporate bond market, individual investors have become more cautious - PHOTO: THANH HOA HCMC – After warnings from the Ministry of Finance over the corporate bond market, individual investors have become more cautious, leading to a 41.1% slump in the total issuance volume in July compared with the previous month. … [Read more...] about Individual investors wary of corporate bonds
Businesses race against the clock to issue bonds
Corporate bond issuance expected to drop after new policies take effect Warnings from management agencies plus new policies that take effect soon will make it more difficult to issue corporate bonds, a capital mobilization channel that was worth $8.5 billion in the first seven months of the year. … [Read more...] about Businesses race against the clock to issue bonds
