Corporate bond holders are creditors, and as such, are only entitled to the interest stipulated in the bond’s coupons (normally a fixed interest rate). Corporate bonds can pose a financial risk to the issuer, due to the recurring obligation to pay interest, even if the project is not profitable. Investors also face risks. In this light, the government has moved to tighten corporate bond issuance regulations. … [Read more...] about Government urges caution on corporate bond risks
Renaissance u s dollar corporate bond fund
Corporate bond activity welcome as market shocks persist unabated
“Bond issuance, one of the major sources of capital for businesses, is in accordance with the law. Bank loans cannot be the only permanent source for financing, especially for long-term capital,” said Truong Thanh Duc, chairman of law firm BASICO. … [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
The warnings have made individual investors cautious before making investments in the market. Besides, due to the second outbreak of the Covid-19 pandemic at the end of July, investors, especially institutional investors, have rushed to hold cash as a safe option rather than risky assets, said Dinh Quang Hinh, head of the macro economy and strategy department of VNDirect Securities Company. … [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
