Mizzi Organisation seeks listing of €25m bond issue

lgalea

Oct 22nd 2009, 20:35

Bonds means they work with your money at your own risk.

R.Weninger

Oct 22nd 2009, 16:25

It does matter who I give my money too ! Regular savings with banks are guaranteed up to certain maximum amounts if a bank goes bankrupt..For that safety you receive a lower interest rate. Most of the recent Maltese bonds are only guaranteed by the issuers themselves and they make sure that the investor knows that they are unsecured.Of course you have to read the prospects.That is like you give me your money and I guarantee to pay it back.. The main question is whether the issuer is earning enough to at least pay the interest on the bond without running up new debts. But that means reading through many,many pages of end of 2008 reports of the quoted Mizzi related companies and making your own judgement. for 2009 and following years.
So nobody is forcing anybody to invest in bonds.

c. camilleri

Oct 22nd 2009, 15:58

@ Carlo Grech What happens if a bank goes bust as many did this yr? Issue of bonds has been going on for long time. Instead of depositing the money with the bank at low interest rates and the bank lends your money at higher interests, you are bye passing the bank.
Anyhow Carlo nobody is forcing you to subscribe.

Carlo Grech

Oct 22nd 2009, 14:41

Bonds (aka a loan) to pay back another bond (loan). So what happens if investors were to wake up and stop buying every bond that is issued? Will they be able to pay back the first bonds?

In any case, as a bank employee once told me, most people only look at the interest rates…