Investors Are Recommended Carefully When Buying Corporate Bonds

There are many risks around the fact that individual investors participate in the bond market. High-end interests will come with high risks when individual investors buy corporate bonds as one of the recommendations to be Expert stated at the online seminar "Individuals invest in corporate bonds: identify and behave risks" have just been held in Ho Chi Minh City. Table at the seminar, Mr. Do Ngoc Quynh, Secretary-General The Vietnam Bond Market Association said that in investors participating in the corporate bond market, first mentioned as commercial banks, securities companies, followed by the Investment funds, finally are individual investors. Personal investors are increasingly actively involved in bond issuances of enterprises in both primary and secondary markets

. However, this also sets the issue of the development of corporate bonds in the past time with overheating, the market participation of individual investors have the potential to risk the investor itself and The sustainable development of the corporate bond market in particular, Vietnam financial market in general. Dong Do Ngoc Quynh, General Secretary of Vietnam Bond Market Association. Photo: VnEconomy
According to Mr. Do Ngoc Quynh, there are many individual investors attracted when participating in corporate bond investment by high interest rates, while setting the current legal foundation issue sufficient To ensure the rights of individual investors when they join this market. In addition, release organizations are enterprises or financial intermediaries such as securities companies have fully implemented legal regulations to ensure and protect the rights of individual investors. Personal investors themselves have enough knowledge, skills and capacity to assess risks when participating in the market. This is the weaknesses that the time through the Vietnam Bond Market Association, the Ministry of Finance and many units in the market have continuously discussed and provided a step-by-step solution to improve the capacity of assessment and control Risks of individual investors. Thereby helping individual investors to participate in corporate bonds are increasingly healthy and effective. From the perspective of state management agencies, Mr. Nguyen Hoang Duong, Deputy Director of Banking and Finance Department, Ministry Finance said that the time through the Ministry of Finance has made great efforts in completing the system of legal documents related to the development of corporate bond market. Dong Nguyen Hoang Duong, Deputy Director of Finance Department Bank, Ministry of Finance. Photo: VietnamFinance
According to that, the Ministry of Finance has submitted to the Government on the road bond development roadmap, submitting to the Government for issuance of decrees on corporate bonds to suit each period and accompanied by that period As solutions for market management and development. Since the Government issued Decree 163/201 / ND-CP dated December 4, 2018, regulations on issuance of corporate bonds, Hanoi Stock Exchange established portal information on corporate bonds. Through this portal, investors can exploit information related to the corporate bond market. Mr. Nguyen Tri Hieu, Banking Finance Specialist, in the past few years in Vietnam Enterprise cards are quite strong, many individual investors participate in the market because corporate bond interest rates are too attractive. Here it is necessary to understand bonds that are not an investment tool that is a debt tool. The owner of the owner has the right to request the issuer to return the amount of bonds after a period of 3 years, 5 years, within the certain term of the publisher, it is necessary to pay the obligations of debt. The bank itself. Photo: Baodautu.gop opinion, Mr. Nguyen Quang Thuan, Chairman of Fiinratings Board said that there are quite a lot of risks encountered to individual investors when investing in corporate bonds. The first is the risk of bond issuance organizations that are unable to pay periodic interest rates or pay the original principal payment. Mr. Nguyen Quang Thuy, Chairman of the Board of FiInratings. Photo: VWA. Another risk according to Mr. Thuan is the risk of investors can not immediately sell bonds when there is a need for cash, or do not sell bonds at a price as expected, or right Pay lots of costs to sell bonds. In addition, the risk of valuation of adjusted interest rates with unreasonable risks, resulting in high interest rates but large risks and does not correspond to interest rates. According to the Ministry of Finance

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