COMMENT: High roen bonds are a risk. And almost always inappropriate

There was such a boom here. Many bond investors appeared in nothing in the Esk basin. Suddenly, everyone can assess the risk of the bond and make the right return. For is investing in high roench bond risk, discussed in the comments of economist Martin Mat of Partners.

Investing in a bond requires a whole range of economic knowledge from taxes, through the knowledge of the first regulations and to the basic financial mathematics. Terms such as rating, rating, duration, and even your spread should be the basis for any bond investor. It’s really not enough to just see the income and quickly send someone a pension and go for a risk-free profit. There is no such thing.

Intake is just one of many dleitch factor

Vnos prost nen ve. Seeing a 10% deposit and thinking that earning more than fools with a pension in the bank is a huge mistake. You get 2% in the bank, but for the deposit ru stt. For a promised 10% deposit, send a pension to an unknown company or hunter. Percentage and repayment is guaranteed only by him, dn stt or central bank. In a way, the word guarantee is a clear sign of rotten. Represent only in court, but how to: Where there is nothing, even death does not take.

The risk is a significant factor not the promised input. And if you want to pay someone, you should knock them out in time, find out if they will pay at all, if they pay their debts, etc.

Or can you ask yourself if you would drink to a debtor, or if you would buy bonds with a deposit of 50% ron?

Most people drink for a few percent, so for them. Only in this case it was even a sttn bond. This is the case in Greece in 2012, when government bonds could be obtained with a yield of up to 60%. Unfortunately, this turned out bad for investors. Private investors received barely 10 and 20% of the talk. It was the nominal value of the investment. Sttn bond is simply not safe.

Siln zaklnadlo jmnem kovenant a zajitn

The manaei bond portfolio is therefore very interested in the so-called covenants. These are the obligations that the issuer must observe during the life of the bond. This is, for example, the total debt or protection against the sale of key assets.

The big plus is the bond. Something similar is known from the mortgage. Thus, bonds are often the property of the company, which reduces the risk of default. Of course, I have quality covenants and, of course, the issuer can afford it for a year. But the furnace doesn’t give pension only to someone who accidentally came across the ndra, and he promised me a good year without any problems.

Poison daov pill

When the furnace is just intertwined with financial statements, covenants, compared to similar bonds, and you decide that the few percent returns are worth the risk, then it comes with its own money. He will take from each paid year 15%. This means that when you buy, for example, 7%, you only get 6% on hand, which is again 1% less and that was it.

Of course, the Czechs managed to do it and with the consecration of the former Minister of Finance Kalousek, a small handle was invented. For the whole year, only one year was taxed for each bond, so bonds with a nominal value of 1 crown were issued. Because the subsequent tax base, or rather the year, was rounded down to crowns, ie to zero, there was nothing to tax, even if you took hundreds of thousands of years.

Everything was a few pounds and tax in the horseshoe, but no one paid the tax. Minister Kalousek even recommended it and all investors in sttnch spocch issued a bond. And not just them. A similar structure was used by many other companies, which issued bonds with a nominal value of 1 crown for their owners. However, the Minister has finally woken up and is preparing a report.

ern dra jmnem certifikt

Then there are variously offered certificates, which are in a way bonds, often from quality issuers. Their problem is not that their issuer is somehow a noname company, but that they have such a complicated structure in the aftermath of the year that no one really knows how much they should spend. On average, their input is below the input offered by the issuer normally on the market.

Due to the fact that the year is tangled, there is an anion that no one really knows how the issuer should actually pay in the end and how much he takes on hidden fees. Often, two opportunities will be lost in the event of a fall in stock prices, which in turn reduces my certificate in something much more risky and unsuitable for conservative investors.

Diversification and tax optimization only through funds

When u want to buy a high roen and therefore often speculative or praiv bond is better bond bond fund, which the Serbian tax does not pay. What is left to him is better to sacrifice at the first fund, because the manager of the entire portfolio and definitely better knowledge of the issuer, which monitors today and daily. The funds have a great advantage in their diversification in their diversification, because within the portfolio, boards of companies are bought and eventually one fallen angel does not endanger the total investment.

When we add the daily liquidity that an independent investor can only think about, or the transparency of prices and daily control by the deposit, there is no reason for anyone to try to buy and choose risky bonds on their own.