Investment
A good bond issuetakes into account the interests of both the issuer and the investors.
The successful placement of a bond issue on the market requires good legal knowledge on the subject of loan agreements, analysis of financial market trends, and research on the investors’ expectations.
Bull Trend Brokerage actively collaborates with the biggest Bulgarian institutional investors. Thus, it can structure the issue to best suit both the investors and the loan payee.
We providefinancial analysis of the issuer, primary market research testing the investors’ interest, structuring of the issue itself, and marketing among the investors. We couldalso subscribe all or part of thebonds for our account in order to guarantee the contracting of the loan.
Bonds are debt instruments that companies use toraise financial resources for a certain time period. This additional funding could be used in a concrete investment program or for operational needs. The bond loan is close in characteristics to the bank credit, with the following differences: the principal payment happens either with the last interest payment, or in equal installments, and the loan itself can be unsecured.
The main advantages of these loan securities include formation of credit image for the issuer, ensured access to larger circle of investors, opportunity to acquire long-term financial funding, and flexibility in managing the loan. As a disadvantage of the bond loan can be pointed therelatively high financing price.
Corporate bond issues can be categorized according to their placement as follows:
- Public offering (PO) (addressing an infinite number of investors)
- Issuesplacedonlytoinstitutionalinvestorswithoutprospect (e.g., banks, investmentfirms, insurancecompanies, pension funds, etc.)
- Private placement (issues placed directly to a limited number of investors that don’t resemble public placement)
