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COMMENT: Who extinguishes pores in dungli bonds

Bonds are the largest codes for investors. You can lose the whole dispute with one litter due to the percentage. The problem with the bond is that despite the belief that they are safe, they are actually dangerous, according to comments from analyst Martin Mat from Partners.

Urit calmed down in chaotic waters offered bond bond new regulations prepared by the Czech National Bank. From May, the obligation to have an ISIN bond, ie registration with the Central Depository of Securities, is required for everyone.

This helps to improve the overview of what is actually happening in the Czech bond pond. Konen will see how many strange bonds from obscure issuers in the Czech Republic. If you do not register, it will be an illegal activity and the results will be borne by anyone.

So far, the overall scope and value of issued corporate bonds has been unknown. Gross estimates were around a few billion dollars. Likewise, no one knew how many bonds ended up in trouble even unpaid. Only the peak of the glacier got into the copper, but even here there were several billion lost. Many investors were left without pensions and without help, only with worthless peppers in hand.

The central bank checks the rules

Avoiding new regulation goes unnoticed. Issuers can still choose many other, perhaps uncontrollable ways to get cheap pensions from twins, such as bills of exchange, certificates and issues abroad.

The role of the national bank in this whole process remains passive and even after the amendment, it will not cancel or guarantee the quality of the debt for the repaid bond. It has the mandate only to formally check all the requirements of the Prospectus and to supervise the fulfillment of other conditions necessary for the issue.

After all, it is not even around him to decide for investors, to whom and under what conditions of pension. However, the central bank continues to warn retail investors against unbundled bond purchases. These are often only interesting and forget about the risks. At the same time, due to pr crowns, they can drink not only for years, but for the entire investment.

With an input above 5%, intelligence and justice decline

The boom of the unregulated bond market started it a few years ago. Its main problem was the decrease in the input of sttnch, resp. quality bonds to zero and often below zero abroad. Many ignorant investors still demanded returns of around 3 and 4%, but what in the world, where inflation was 0%, was not mon.

The second reason was the strict regulation of banks, which tightened the screws at the bank and banks were willing to lend me to risky projects. That’s why many smaller companies have turned to retail clients. It was much easier to issue a bond and promise to buy 5 and 6%, not to raise for 15%.

The situation, when investors suddenly saw the difficulty of paying more than not offering quality debtors, was used by many fraudulent issuers, who began to issue debts, and often did not even swear with their repayment.

And first, the lack of regulation of small issues, basic rates around zero and the hunger of the investor after any entry opened the sluices of corporate bond issues. The current situation, when many companies have problems, I can start an avalanche of default, respectively. outstanding bond and deprive many dvorch investors of disputes.

Investments in foreign bonds are patn

Small investors cannot assess the issuer’s risk and therefore cannot estimate whether the purchase is offered adequately. The illiquidity of individual bonds also speaks against investments in individual bonds. The lack of diversification also plays an important negative role, because in this case it is up to one issuer and in case of its problem it is too late to read anything.

A very important argument is dan. In the case of a bond with a purchase, for example, 8%, the investor will receive barely 6.8%, which means a loss of 1.2%. There is nothing easy not to buy a bond fund that does not pay this tax and its costs are well below 1%, not to mention diversification and daily liquidity. For example, the Partners Bond Opportunity fund does not even have entry fees and its cost is barely 0.8%.

Therefore, there is no reason to buy such risks as individual bonds at all. From time to time, Bohuel, as will find out about the people who used to buy a supermegavitable bond, but there are a number of railways, because you can only withdraw from the investment even in the event of major losses and the client will not be able to stay .

It wants common sense and not just to see more crowns

When someone really needs two pensions for individual companies, then perhaps the easiest thing is to get a debt that has an investment rating. In the Czech Republic, it is actually only EZ and pr banks. If you accept more risk, then focus on issuers with all issues, which have a long series of quality financial statements, where you can study their debt, the quality of management, the development of profitability.

Thus, a specific issue, such as real estate and other assets, is good. I’m not talking about making promises of a guarantee, about future deposits and receivables from other companies. I would definitely give my hands to companies that do not have two orders in the register or have only one order per year and the size of one day.

There are many warning signs

If someone even wants to pay a pension for a specific debt, it is advisable to know it for a while. Therefore, do not dispute a suitable snake hunter just because it is washed and imagined. Warn you, for example, of the non-existence of financial statements, the plan of promises of guarantees and the emphasis on the approval of the issue by the Czech National Bank (which is mandatory and only formal). The high indebtedness of the company in the capital, the meaningless guarantee of liquidity (mostly under absolutely appalling conditions), surprisingly attractive income, inexperienced management, low emissions and the like are also a warning.

Kolik by korportn emise mly vynet?

Bad case from case, but corporate / projects / non-public issues should have a decisive return in Czech crowns above 10% and often go much higher to compensate for the risk taken.

For comparison, let’s take, for example, a bond of large profits of the company Sazka with a rating of BB, ie just below the investment dog. This bond is barely 3 years old and the issue has a solid volume of 6 billion crowns, which guarantees adequate liquidity. A similar long-term bond would carry around 0.3% and this is around 5%. How would the yield of a bond had no company name turn out? Moreover, at a time when the state has to subsidize the full economy so that it does not fail. Ten percent is a mole and twenty mons like that.