Corporate bonds - what they are and whether it is worthwhile to invest in it?
Many till associate only with bonds Treasury bonds, called tax. The other three types: municipal (issued by governments), cooperative and corporate, released by the company, appeared in Poland only recently and therefore are still with us little known. Although especially the latter (corporate) may be much better form of savings than Treasury bonds, bank deposits or shares firm.Pierwsze in the history of securities, similar to today's corporate bonds, they appeared in the second half of the nineteenth century. In the United States. Arose when the country's numerous railway lines, power lines, roads, water and sewage networks. Being built it is not the state or local governments (like today), but private companies that needed for this purpose huge funds.
To get them, they offered investors further issue of its shares sprouted but also less risky securities bonds secured eg. The assets of the company, with their maturity date (maturity) of up to a hundred years. Currently, about such maturities have no way, but still it happens that they amount to more than 10 years. Such bonds are called long-term, those whose maturity varies from 3 to 10 years medium term, and up to 3 years short-term.
In Western countries, the financing of investment companies with the issue of the bonds is now as common as issuing for this purpose the company's shares or taking an investment loan. About Poland still we can not say the same, but quickly catching up in this area. His bonds releases more and more companies, because it is for them especially in the current crisis conditions very attractive form of raising capital for development. Not only because that form is usually cheaper than a bank loan, it's even easier to implement. Today, in our country it is often easier company to sell its bonds than get a bank loan, fortified exacerbation is still required. In addition, the bonds can have fixed interest rates, making it even before the issue can be accurate to buck calculate their cost. Meanwhile, expenses associated with servicing the loan usually having variable interest rate are difficult to estimate accurately.
For corporate bonds are also attractive alternative to finance their development through the issuance of shares. The market share is in fact recently frustrated, which can not all emissions are successful. Besides the release notes do not need to provide influence on company management and new shareholders rozwadniac its ownership structure, as is the case with the issue of shares. Among the companies, which already emit with us their bonds, you can find such well-known and large companies, as PKN Orlen, PKO BP, PGNiG, Getin Noble Bank and energy company Energa.
On the debt market Catalyst (operating at the Stock Exchange in Warsaw) are currently traded bonds of 127 companies with a total value of 48 billion zl. At this point, however, you have to ask the question, who is in our country can buy corporate bonds? Is the ordinary Kowalski, ie. individual investor, small, somewhere willing to invest their private savings? The answer is yes, it can buy them, but only through a brokerage house in which you have put on your own account. Though it should be added that in Poland, where the bond market companies are still, after all underdeveloped (compared to western countries), still the vast majority of greenhouse emissions of these securities is addressed primarily to large investors, institutional.