December 15, 2017, USD 200 million – the highest one-time issue of corporate bonds of a loan company. For comparison, the bonds of the largest Polish bank on the Catalyst market are worth USD 1 billion 700 million. The difference is large, but the corporate bond market should be gaining popularity among loan companies. Unfortunately, they have limited access to other sources of financing. Borrowers can also benefit from this. http://www.wegotgame.net/car-loan-bad-credit-rate-get-low-interest-car-loan-bad-credit/ for a critique
The main difference between treasury bonds and corporate bonds is the issuer. In the case of the former, as the name suggests, we are dealing with state debt securities. The issue of corporate bonds is on the side of private companies and companies. Treasury bonds are one of the safer ways to invest savings. However, not too high interest rate, or profit, goes hand in hand with security.
The corporate bond market is associated with much more attractive interest rates. By purchasing company debt securities, you can count on higher returns, but you are also exposed to higher investment risk. Before making a decision to buy bonds, carefully examine the financial situation of the issuer. Such actions will, at least in part, protect you from depositing money in the bonds of a company that is facing bankruptcy. Insolvency of corporate bond issuers is much more likely than government insolvency.
New debt securities, which previously did not have another owner besides the issuer, are acquired during the issue of corporate bonds on the primary market.
Corporate bonds, which are a source of financing for companies, are more often issued privately. This is a less expensive way, which is not subject to verification by the Polish Financial Supervision Authority.
Buying a loan from a loan company is a situation where there is a paradoxical reversal of roles. If you decide to take such a step, your debtor will be the loan institution that is the issuer of the bonds. She will be required to repay her debt with interest.