Investing in corporate bonds?

Size: px
Start display at page:

Download "Investing in corporate bonds?"

Transcription

1 Investing in corporate bonds? This independent guide fro the Australian Securities and Investents Coission (ASIC) can help you look past the return and assess the risks of corporate bonds.

2 If you re thinking about investing in corporate bonds Contents Read this guide together with the prospectus for the corporate bonds. The return offered is not the only way to assess this investent: ake sure you understand the risks. The inforation in this guide is general in nature. To work out a detailed strategy that eets your individual needs, consider seeking professional advice fro a licensed financial adviser. Your investent checklist 4 Use this investent checklist to ake sure you understand how corporate bonds work and whether they eet your investent needs. Know what the investent is 6 What is a corporate bond? Do your own research 12 Always read the prospectus and research the copany issuing the corporate bonds if you re thinking of investing. Reeber Anything you put your oney into should eet your goals and suit you. No one can guarantee the perforance of any investent. You ay lose soe or all of your oney if soething goes wrong. Bond basics: Things you need to know before investing 14 Understand the key features of corporate bonds and assess the risks of this investent. Tips for reading a prospectus 36 Unpack the jargon in prospectuses for corporate bonds. Visit ASIC s website for consuers and investors at for ore independent inforation fro ASIC about what to watch out for when investing.

3 Yes No Do you know when the bonds ature (the aturity date)? If no, see page 16 Your investent checklist Do you know the length of the bonds ter in years? If no, see page 16 Do you know if interest is paid at a fixed rate or floating rate? If no, see page 18 If they are floating rate bonds, do you understand how the interest rate is calculated? If no, see page 18 This checklist can help you decide whether corporate bonds are the right investent for you. Do you know how often you will be paid interest? If no, see page 20 Make sure you can answer the following questions before you invest your oney in corporate bonds. If you can t answer these questions, read the relevant sections of this guide. Do you know if the copany has the financial capacity to pay you interest and return your principal at aturity? Do you understand that you ay lose oney if you sell your bonds in the arket? If no, see page 22 If no, see page 26 Do you know if the bonds are secured or unsecured? If no, see page 28 Do you understand where you would stand in relation to other creditors if the copany issuing the bonds couldn t pay its debts? If no, see page 28 Do you know if the copany issuing the bonds can buy the back before the aturity date? If no, see page 32 Do you understand the risks of investing in corporate bonds? If no, see page

4 Know what the investent is What is a corporate bond? A corporate bond is one way for a copany to raise oney fro investors to finance its business activities. In return for your oney, the copany issuing the bonds (the issuer) proises to: pay you interest pay back the oney you ve invested (your principal) on a certain date. By investing in corporate bonds, you are lending your oney to a copany, with all the risks that this involves. For exaple, you ay not get your oney back if the copany issuing the bonds goes out of business. How is a corporate bond different to a debenture? A debenture is a type of corporate bond. To be called a debenture, a corporate bond ust be secured against property. Corporate bonds generally ay or ay not be secured against property. How are corporate bonds different to governent bonds, ter deposits or shares? Corporate bonds are copletely different to governent bonds, ter deposits or shares: A corporate bond is not the sae as a governent bond, which is a low-risk investent. A corporate bond is not the sae as a ter deposit, which is currently guaranteed by the Australian Governent s deposit insurance schee (for balances up to $1 illion). A corporate bond is not the sae as a share. If you buy a copany s shares, you have an ownership interest in the copany. If you buy corporate bonds, you are lending oney to the copany issuing the bonds. As a bond holder, you are considered a creditor. For a full coparison of corporate bonds with these other products, see Table 1 on pages 8 9. A debenture is also always a fixed rate investent, while corporate bonds ay be fixed interest or floating rate investents. This eans that the interest rate on the oney you lend is either set in advance (fixed) or linked to a variable interest rate (floating). Regardless of the type of interest rate, it s iportant to reeber that with corporate bonds (as with debentures), interest payents on your oney and the return of your principal are not certain. 6 7

5 Table 1: Soe advantages and disadvantages of corporate bonds copared to other investents Product Advantages Disadvantages Product Advantages Disadvantages Corporate bonds Ter deposits Regular interest payents Fixed-ter investent (unless you decide to sell your bonds on secondary arket, see page 11) Soe security (your bonds generally rank higher than shares if the copany can t pay all its debts) Governent guaranteed for balances up to $1 illion If the copany becoes insolvent (that is, it can t pay its debts), you ay not get interest payents and/or your capital back Risk that no one will want to buy your bonds on the secondary arket if you do not want to hold the to the aturity date Debt security ranking ay be low Lower interest rates Bank charges and fees Governent bonds Shares Regular interest payents Fixed-ter investent Governent guaranteed repayent of debt Low-risk investent Dividend payents Ownership interest in the copany Easily traded on secondary arket Lower interest rates Hard to access for retail investors You rank lower than other investors such as holders of corporate bonds Dividends subject to copany perforance Easy access to your oney 8 9

6 Why invest in corporate bonds? With corporate bonds, you norally get a regular incoe and a higher interest rate than ay be available on a ter deposit or other cash-based product. However, corporate bonds are not generally designed to give you capital growth (that is, the bonds you buy are unlikely to increase in value during the tie you have the investent). Can you lose oney by investing in corporate bonds? Soe investors believe that corporate bonds have little or no risk. But, like any investent, corporate bonds can be risky. The ain risk is that the copany issuing the bonds ight go out of business. This could ean you lose soe or all of your oney because the copany can t afford to pay all of the oney owed to its creditors, including you (this is known as credit risk). Corporate bonds are also subject to other investent risks like interest rate risk, liquidity risk and prepayent risk, see pages The prospectus for the bonds should tell you about these and any other risks. Corporate bonds are generally less risky than shares. How can you buy corporate bonds? There are two ain ways to buy corporate bonds: through a public offer (the priary arket) or through a securities exchange (the secondary arket). Priary arket (public offer) Most retail investors buy corporate bonds through a public offer. A copany that akes a public offer will issue a prospectus and investors apply directly to buy bonds. Many investors find out about these offers through newspaper advertiseents. The prospectus for an offer of corporate bonds generally specifies a iniu investent parcel (or bundle of bonds). People who invest in corporate bonds when they are first issued pay the face value of the bond (usually $100 each). If you buy corporate bonds through a prospectus, it is very iportant to read the docuent thoroughly (see Tips for reading a prospectus on pages 36 39). Secondary arket (securities exchange) You can buy (and sell) soe corporate bonds on the Australian Securities Exchange (ASX), just like you would for shares, after they have already been issued in the priary arket. If you buy bonds on the ASX, you will pay the arket price, which ay be higher or lower than the face value of the bond. You will also pay transaction fees (for exaple, coission or brokerage fees) to your broker

7 Do your own research Regardless of how you buy corporate bonds, it s iportant to understand the features and risks of the product before you invest. A good place to start if you re buying bonds when they are first issued is the prospectus. If you re buying the on the secondary arket (see page 11), the prospectus ay be out-of-date so the best place to get current inforation is the issuing copany s website or the ASX. Why is the prospectus iportant? The prospectus tells you how the investent works. It should tell you everything you need to know about the copany issuing the bonds, what it will do with your oney, and the ters of the investent. What inforation is available through the copany s website or the ASX? Many copanies put inforation on the bonds they have issued on their website. The inforation is typically found under the investor centre tab. Listed copanies ust also give inforation on their bonds to the ASX as part of their disclosure obligations. You can find this inforation on the ASX s website at under the copany nae. Soe investors find prospectuses hard to read and understand. It is very iportant that you carefully read the sections of the prospectus that: explain the key features and risks of the investent give you inforation about certain indicators that can help you assess the risks tell you about the tiing of interest payents and conditions around the. You should find this inforation in the first few pages of the prospectus. A prospectus ust be lodged with ASIC before it can be used to raise oney fro investors. However, this does not ean that ASIC has checked or endorsed the investent in any way

8 Bond basics: Things you need to know before investing To help you understand what you read in the prospectus, we ve put together a quick suary of the key product features and risks of corporate bonds. Even though this section is called bond basics, soe of the concepts are fairly coplex. The ters and conditions of corporate bonds vary widely and they can be structured in any different ways. That s why it s especially iportant for you to understand what you re putting your oney into before you go ahead. For ore tips on reading a prospectus and what the jargon really eans, see pages Maturity date and ter Does the ter of the corporate bonds suit your financial needs? 2. Interest rates Will you be paid interest at a fixed rate or a floating rate? 3. Interest payents Will the frequency of interest payents eet your incoe needs? 4. Financial capacity Does the copany have the financial capacity to pay you interest and return your principal at aturity? 5. Market value How will changes in the arket value of the corporate bonds affect you? 6. Security and ranking Will you be able to get your oney back if the copany can t pay its debts? 7. Early redeption Can the issuer buy the corporate bonds back early (and how uch interest ight you lose if they do)? 8. Investent risks Have you thought about the risks of this investent and are you cofortable with the?

9 1. Maturity date and ter The aturity date is the date on which your investent ends (atures). On this date, the issuer ust buy back (or redee) all of the corporate bonds issued to you. You can expect to get back the face value of the bonds plus any interest that has accrued since the last tie interest was paid to you. The aturity date is usually stated at the front of the prospectus as part of a suary schedule of the ters and conditions of the bonds being offered. For exaple, for an investent that has a lifespan of five years, under the heading Maturity, the prospectus ight say: The issue atures on the fifth anniversary of the issue date. Another way to describe a corporate bond with a lifespan of five years is to say that it has a five-year ter. Generally, in the Australian arket, corporate bonds are either: short-ter (aturity dates of up to one year) ediu-ter (aturity dates of one to three years) long-ter (aturity dates of ore than three years). The issuer ay be able to buy back the corporate bonds before the aturity date. This is called early redeption: see page 32. What s at stake for you? Check the ter of the corporate bonds and ake sure it suits your financial needs (for exaple, do you want to invest in an interest-paying investent over a three-year ter?) Unless you plan to trade listed corporate bonds on the secondary arket and can find a buyer for the, you will need to wait for your bonds to ature before you get your oney back. In the case of short-ter bonds, your oney will be tied up for one year. For ediu-ter and long-ter bonds, it will be even longer. If the issuer can buy back their bonds before the aturity date, this will affect any interest payents that you expect to get over the life of the bond. What would this ean for your incoe? 16 17

10 2. Interest rates Corporate bonds can pay interest at a fixed rate or a floating rate. Fixed rate The interest rate on fixed rate bonds is set when the bonds are issued and is shown as a percentage of the face value (usually $100) of the bond. The interest rate stays the sae for the life of each bond. For exaple, a $100 bond with an 8% interest rate will pay investors $8 a year in instalents of $4 every six onths or $2 every three onths (quarter). These instalents are called coupon payents. Floating rate The interest rate for floating rate bonds, as the nae suggests, varies or floats, in line with oveents in a benchark interest rate. The benchark rate is usually the variable interest rate for a bank bill for a three or six-onth ter. (Bank bills are short-ter investents between banks.) A fixed argin is generally added to the benchark interest rate to get the floating rate. For exaple, if the interest rate for a three-onth bank bill is 3.5% and the fixed argin is 4%, the floating rate will be 7.5%. What s at stake for you? If you invest in fixed interest rate bonds, you ll get the sae coupon payent every quarter or six onths for the life of the bond. This is iportant if you re depending on the interest payent for incoe. If you invest in floating rate bonds, the coupon payent will vary each tie, soeties quite substantially. You could get higher returns if the benchark interest rate goes up, but you also risk getting lower returns if the benchark interest rate goes down. The prospectus should tell you exactly how and when the floating rate will be calculated for coupon payents (this is often at the back of the prospectus under the ters and conditions)

11 3. Interest payents One of the ain benefits of corporate bonds is that, up to the aturity date, you will norally get a regular incoe fro interest payents on the oney you have invested. How often you can expect to be paid interest is called the payent frequency. Norally, interest on corporate bonds is paid every three onths (quarterly). Specific dates for the payents are shown in a suary schedule at the front of the prospectus, with ore detail at the back under the ters and conditions. Soe issuers include an option allowing the to adjust the payent frequency on a cuulative basis. This eans that, if the issuer can t pay your interest payent on the scheduled date, they will pay you an accuulated aount including interest on the next scheduled payent date. What s at stake for you? Check the prospectus for the schedule of interest payents. Does the payent frequency suit your needs? If the issuer can adjust the payent frequency on a cuulative basis, how will this affect your incoe and cash flow requireents? Issuers ay include this option to give theselves ore flexibility with their cash flow. Even though you will still get the oney you are owed, it will be worth less to you because inflation will have eaten away soe of the payent s real value due to the delay

12 4. Financial capacity When you buy corporate bonds, you are lending oney to a copany. You need to be sure that the copany can pay you interest each quarter and repay your principal at aturity. One way to assess whether the copany can eet its financial obligations is to review the pro fora financial inforation in the prospectus. While this ay see daunting given the volue and coplexity of this inforation, you can get soe idea by focusing on iportant financial etrics. What you need to know is whether you re dealing with a healthy copany with low levels of debt and plenty of cash to service it, or a troubled copany that is heavily in debt (leveraged) and cash-poor. Table 2 on page 24, highlights the key pieces of financial inforation that should help you work this out. What s at stake for you? A copany is less likely to be able to ake interest payents to you and repay your principal if: its financial perforance over tie has been lacklustre it has a low interest coverage ratio, or a high debt to equity ratio. Think about whether you are willing to risk your oney with such a copany

13 Table 2: Key indicators of a copany s financial capacity The copany s financial perforance over tie Copanies with a solid financial perforance history strong earnings, profitability and cash flow are uch better placed to eet their financial obligations. The copany s ability to pay interest on its debts (interest coverage ratio) A copany s earnings should be greater than its interest expenses that is, the copany should earn enough fro its business operations to cover interest payents on oney it borrows. Two coon interest coverage ratios are: earnings before interest, tax, depreciation and aortisation (EBITDA) divided by net interest expenses earnings before interest and tax (EBIT) divided by net interest expenses. Regardless of which ratio is used, ake sure that the copany s earnings are cofortably larger than net interest expenses. For exaple, if EBIT was $500,000 and net interest expenses were $100,000, the interest coverage ratio would be 5, which eans that earnings are five ties larger than interest expenses. The copany s level of debt or leverage (gearing ratio) A good indicator of a copany s level of debt is a ratio that easures total liabilities divided by shareholder equity (gearing ratio). The higher this ratio, the ore highly leveraged the copany. As with any ratio, what is appropriate can depend on the copany s business. Although the two ratios above are iportant, you should also take into account other credit indicators such as: whether the copany has defaulted on any current or previous debt obligations, or has breached any conditions on its loans (loan covenants), and whether the copany has a significant aount of debt that will be aturing soon, and which ay need to be rolled over (its debt aturity profile)

14 5. Market value Corporate bonds usually have a face value of $100 each, which is what you would pay if you bought a bond through a prospectus when it was first issued. If you buy or sell corporate bonds on the secondary arket, like shares, their price can vary fro day to day. There ay be several reasons for the difference between the arket price and the face value of particular bonds: see Table 3. Table 3: Influences on arket value Interest rates have changed When interest rates rise, new bonds ay be issued into the arket with higher returns than older bonds. This eans that the older bonds are worth less and their arket price falls. When interest rates drop, new bonds ay be issued into the arket with lower returns than older bonds. This eans that the older bonds are worth ore and their arket price goes up. The copany s credit rating has changed What s at stake for you? A rise or fall in the arket price of a corporate bond won t affect how uch oney you ll get back if you hold onto the bonds until the aturity date. In this case, you should be paid the face value of the bonds (that is, what you paid for the when they were first issued) plus any interest due to you since the last interest payent. If you re buying or selling corporate bonds in the secondary arket, though, the arket price will affect you. What you pay to buy the bonds or get for selling the ay be lower or higher than the face value, depending on the arket price at the tie you buy or sell. A credit rating agency ay decide to lower the credit rating for a copany s bonds (for exaple, if the copany isn t doing as well as it was when the bond was issued). Details of any significant changes should be announced to the ASX. If this happens, the arket price of the bond ight fall. On the other hand, the credit rating ight increase, leading to a higher arket price. There are fewer potential buyers If there are fewer potential buyers for corporate bonds, it ay take longer to sell your bonds at the price you want. This can be a proble if you need to get your oney back quickly

15 6. Security and ranking If you re thinking of investing your oney in corporate bonds, it s iportant to be aware of how likely you are to get your oney back if the copany that issued the bonds becoes insolvent (that is, if it can t pay its debts). When a copany becoes insolvent, its assets ay have to be liquidated, with the proceeds being distributed to everyone who has a stake in the copany. This eans all the creditors (including bond holders) and shareholders. There are two factors that deterine how likely you are to get your oney back: whether the corporate bonds are secured or unsecured and your ranking in the list of creditors. These things should be clearly described in the prospectus. Figure 1 on page 30 explains the security and rankings that usually apply to corporate bonds. We have included ter deposits and shares for a coparison. What s at stake for you? Check what the bonds are secured against and what your ranking is if the issuing copany becoes insolvent. Think about whether you can afford to lose soe or all of your oney if things go wrong. As a rule of thub, the holder of an unsecured and subordinated corporate bond is ranked higher than the holder of shares in a copany, but lower than a secured creditor (for exaple, the issuer s bank). This eans that, generally, if the issuing copany becoes insolvent and its assets are liquidated, you ay only get back your oney after all the secured creditors have been paid. Even then, you ay only get back part of your oney, depending on what is left over

16 Figure 1: Security and ranking for corporate bonds copared to other investents Ter deposits Security/ranking: Your deposit is secured against the current governent guarantee (for aounts up to $1 illion). What it eans: You will get all your oney back if the bank or other institution becoes insolvent, regardless of other debts it has. Corporate bonds Senior secured Security/ranking: The corporate bond is secured against copany property and you are ranked ahead of other secured creditors. What it eans: You ay get soe of your oney back before other secured creditors are paid. Corporate bonds Senior unsecured Security/ranking: The corporate bond is not secured against copany property but you are ranked ahead of other unsecured creditors. What it eans: You ay get soe of your oney back after secured creditors are paid, but before other unsecured creditors are paid. Corporate bonds Subordinated Security/ranking: The corporate bond is not secured against copany property and you are not ranked ahead of other unsecured creditors. What it eans: You ay get soe of your oney back after secured and senior unsecured creditors are paid, but before other copany debts are paid. Shares Security/ranking: You are ranked below all other creditors. What it eans: You ay get soe of your oney back after all the copany s creditors have been paid

17 7. Early redeption Early redeption eans that the issuer can buy back the corporate bonds before the aturity date. If the issuer redees the bonds early, they will usually pay you the face value of the bond with any accrued interest to date since your last interest payent. Although it s less coon, you ay also be allowed to ask the issuer to redee your bonds before the aturity date. The prospectus should tell you the circustances under which early redeption is possible. This will be either unliited redeption or specified redeption. Specified redeption This eans that the issuer can only redee the bonds before the aturity date if certain events occur as specified in the prospectus. An exaple of a specified event ight be if the project the bond was issued to raise oney for is a joint venture and a key partner pulls out. Unliited redeption This eans that the issuer can redee the bonds at any tie. What s at stake for you? If the issuer redees the bonds early, you will iss out on any potential interest you would have earned. You ay also end up paying extra costs if you decide to re-invest your oney in soething else. If you bought the corporate bonds on the secondary arket, you could also lose oney if the issuer redees the bonds early. This is because you will probably be paid the face value of the bonds, which ay be lower than the arket price you paid for the

18 8. Investent risks Soe investors think that corporate bonds are about as risky as governent bonds. This is not the case. They are ore risky than governent bonds. The prospectus should tell you about the risks that apply to corporate bonds generally (see Table 4) and any other risks that ay apply to the particular bonds. What s at stake for you? Although corporate bonds are less risky than shares, you could still lose soe or all of the oney you ve invested. Make sure you understand what the risks are and whether you can afford to take the with your oney. Table 4: Types of risk and what they ean Credit risk This is the risk that the issuer ay not be able to pay back the oney they owe on the bonds they have issued (that is, they ay default on interest payents to you, or not be able to pay back the oney you originally invested). Interest rate risk This is the risk that the arket value of the bonds will go up and down as interest rates go up and down. For exaple, if interest rates go up, the arket value of corporate bonds will generally go down (this eans you ay get less oney for your bonds if you re planning to sell the on the secondary arket than what you initially paid for the). Liquidity risk This is the risk that you won t be able to sell your bonds when you want to at the price you want to because there aren t any buyers for the bonds. Prepayent (or early redeption) risk This is the risk that the issuer will redee the bonds early if interest rates fall and the arket price goes up. If this happens, you will be paid the face value of the bonds (you ay have paid ore for the or they ay be worth ore on the secondary arket)

19 Tips for reading a prospectus Figure 2: Key features of the corporate bonds (presented in a prospectus) What inforation will you usually see in a prospectus? Figure 2 highlights the ost iportant issues and risks for you to check in a prospectus. To find out what the jargon really eans, see the explanations below. Prospectuses for corporate bonds vary depending on the copany issuing the bonds. So this is only an indication of the inforation to look for. What does it ean? 1 This is the copany issuing the bonds Each bond costs $100. You ust buy at least 50 bonds. We want to borrow $200 illion but reserve the right to borrow ore or less. We will pay you $100 per bond plus accrued interest on 1 May The interest rate on these corporate bonds is a floating rate based on a arket-deterined rate (the variable rate for a three-onth bank bill) plus a fixed interest argin of 4.25%. This eans that your interest payents will vary. If you buy and hold 100 or ore bonds (up to a axiu of 500 bonds), the interest rate on your bonds will be 0.25% higher in the first year. You can expect your interest payents on these dates. (This is a saple only. The schedule of payents will vary depending on the issuer)

20 This is the period of tie during which interest will accrue on the oney you ve invested. If interest payents are ade every quarter, the interest period would be roughly three onths. You should be able to buy or sell these corporate bonds on the ASX. The corporate bonds are unsecured (that is, they are not secured against copany property). If you invest in these corporate bonds, your ranking will be Senior unsecured. If the issuer becoes insolvent (that is, can t pay its debts), you ay get soe of your oney back after secured creditors (like the issuer s bank) are paid but before other unsecured creditors are paid. A ranking of Subordinated is lower and is usually unsecured. The group of copanies that the issuer belongs to will guarantee the issuer s obligations including paying you interest and paying back the oney you invested (your principal) if and when necessary. The issuer can buy back these corporate bonds early (that is, before the aturity date) and ay do so if any of these events occurs. With ost corporate bonds, you will not have the sae right. Like any investent, corporate bonds can be risky (for exaple, the copany ay becoe insolvent or you ay not be able to sell your bonds in the secondary arket). Make sure you understand and carefully weigh up the risks set out in the prospectus before you invest your oney

21 Misleading advertising? Hard sell? Have you coe across an advertiseent for a financial product that you think is isleading? Or have you been pressured by a sales person to ake a decision when you didn t have enough inforation, or weren t sure that the product was right for you? Phone ASIC on to tell us about it. You can lodge a foral coplaint at See for soe strategies to help you resist pressure selling, so you don t end up investing in a financial product that doesn t suit your needs. For ore inforation on what to look out for in general investing, go to The Australian Securities and Investents Coission consuer website, FIDO, offers you financial tips and safety checks. For consuers and investors: or call ASIC s Infoline on ISBN Australian Securities and Investents Coission, Deceber 2009 This publication is printed on Sovereign Offset.

Investing in corporate bonds?

Investing in corporate bonds? Investing in corporate bonds? This independent guide fro the Australian Securities and Investents Coission (ASIC) can help you look past the return and assess the risks of corporate bonds. If you re thinking

More information

Example: Suppose that we deposit $1000 in a bank account offering 3% interest, compounded monthly. How will our money grow?

Example: Suppose that we deposit $1000 in a bank account offering 3% interest, compounded monthly. How will our money grow? Finance 111 Finance We have to work with oney every day. While balancing your checkbook or calculating your onthly expenditures on espresso requires only arithetic, when we start saving, planning for retireent,

More information

INVESTING IN MORTGAGE FUNDS?

INVESTING IN MORTGAGE FUNDS? INVESTING IN MORTGAGE FUNDS? Independent guide for investors about unlisted mortgage funds Mortgage funds can also be called mortgage trusts or mortgage schemes. About ASIC The Australian Securities and

More information

INVESTING IN DEBENTURES?

INVESTING IN DEBENTURES? INVESTING IN DEBENTURES? Independent guide for investors reading a prospectus for unlisted debentures This guide is for you, whether you re an experienced investor or just starting out. About ASIC The

More information

Investing in unlisted property schemes?

Investing in unlisted property schemes? Investing in unlisted property schemes? Independent guide for investors about unlisted property schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from

More information

Investing in mortgage schemes?

Investing in mortgage schemes? Investing in mortgage schemes? Independent guide for investors about unlisted mortgage schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from ASIC about

More information

Five Things To Know About Shares

Five Things To Know About Shares Introduction Trading in shares has become an integral part of people s lives. However, the complex world of shares, bonds and mutual funds can be intimidating for many who still do not know what they are,

More information

U.S. Treasury Securities

U.S. Treasury Securities U.S. Treasury Securities U.S. Treasury Securities 4.6 Nonmarketable To help finance its operations, the U.S. government from time to time borrows money by selling investors a variety of debt securities

More information

The United States was in the midst of a

The United States was in the midst of a A Prier on the Mortgage Market and Mortgage Finance Daniel J. McDonald and Daniel L. Thornton This article is a prier on ortgage finance. It discusses the basics of the ortgage arket and ortgage finance.

More information

A WISER Guide. Financial Steps for Caregivers: What You Need to Know About Money and Retirement

A WISER Guide. Financial Steps for Caregivers: What You Need to Know About Money and Retirement WISER WOMEN S INSTITUTE FOR A SECURE RETIREMENT A WISER Guide Financial Steps for Caregivers: What You Need to Know About Money and Retireent This booklet was prepared under a grant fro the Adinistration

More information

ESTIMATING LIQUIDITY PREMIA IN THE SPANISH GOVERNMENT SECURITIES MARKET

ESTIMATING LIQUIDITY PREMIA IN THE SPANISH GOVERNMENT SECURITIES MARKET ESTIMATING LIQUIDITY PREMIA IN THE SPANISH GOVERNMENT SECURITIES MARKET Francisco Alonso, Roberto Blanco, Ana del Río and Alicia Sanchis Banco de España Banco de España Servicio de Estudios Docuento de

More information

Types of Debt & Debt Lingo Quick Reference. http://breakingintowallstreet.com. Here s the 10-second version of everything you need to know about debt:

Types of Debt & Debt Lingo Quick Reference. http://breakingintowallstreet.com. Here s the 10-second version of everything you need to know about debt: Here s the 10-second version of everything you need to know about debt: Debt Type Revolver Term Loan A Term Loan B Senior Notes Subordinated Notes Mezzanine Interest Rate: Lowest Low Higher Higher Higher

More information

Fixed-Income Securities and Interest Rates

Fixed-Income Securities and Interest Rates Chapter 2 Fixed-Incoe Securities and Interest Rates We now begin a systeatic study of fixed-incoe securities and interest rates. The literal definition of a fixed-incoe security is a financial instruent

More information

Project Evaluation Roadmap. Capital Budgeting Process. Capital Expenditure. Major Cash Flow Components. Cash Flows... COMM2501 Financial Management

Project Evaluation Roadmap. Capital Budgeting Process. Capital Expenditure. Major Cash Flow Components. Cash Flows... COMM2501 Financial Management COMM501 Financial Manageent Project Evaluation 1 (Capital Budgeting) Project Evaluation Roadap COMM501 Financial Manageent Week 7 Week 7 Project dependencies Net present value ethod Relevant cash flows

More information

Investing in infrastructure?

Investing in infrastructure? Investing in infrastructure? Independent guide for investors about infrastructure investments This guide is for you, whether you re an experienced investor or just starting out. Key tips from ASIC about

More information

Standards and Protocols for the Collection and Dissemination of Graduating Student Initial Career Outcomes Information For Undergraduates

Standards and Protocols for the Collection and Dissemination of Graduating Student Initial Career Outcomes Information For Undergraduates National Association of Colleges and Eployers Standards and Protocols for the Collection and Disseination of Graduating Student Initial Career Outcoes Inforation For Undergraduates Developed by the NACE

More information

Investing in Shares Nuts and Bolts of Buying Shares. Australian Shareholders Association Tutorial Resource Library

Investing in Shares Nuts and Bolts of Buying Shares. Australian Shareholders Association Tutorial Resource Library Investing in Shares Nuts and Bolts of Buying Shares Australian Shareholders Association Tutorial Resource Library Disclaimer The ASA is not licensed to give financial advice. The content of these presentations

More information

ACTIVITY 8.1 A MARGINAL PLAY

ACTIVITY 8.1 A MARGINAL PLAY LESSON 8 BUYING ON MARGIN AND SELLING SHORT ACTIVITY 8.1 A MARGINAL PLAY Stockbroker Luke, Katie, and Jeremy are sitting around a desk near a sign labeled Brokerage Office. The Moderator is standing in

More information

Last For A Lifetime. Making Your Money. Why You Need to Know About Annuities

Last For A Lifetime. Making Your Money. Why You Need to Know About Annuities Making Your Money Last For A Lifetie Why You Need to Know About Annuities A Joint Project of The Actuarial Foundation and WISER, the Woen s Institute for a Secure Retireent Acknowledgeents Special thanks

More information

CommBank Retail Bonds Series I Tranche A

CommBank Retail Bonds Series I Tranche A Series I Tranche A Offer Document Issuer Commonwealth Bank of Australia ABN 48 123 123 124 Sole Arranger and Bookrunner Commonwealth Bank of Australia Joint Lead Managers Citigroup Global Markets Australia

More information

RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS

RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS Contents Explaining the world of bonds 3 So what are bonds? 3 Understanding the risks 4 Three words you need to know 4 Understanding

More information

What s on a bank s balance sheet?

What s on a bank s balance sheet? The Capital Markets Initiative January 2014 TO: Interested Parties FROM: David Hollingsworth and Lauren Oppenheimer RE: Capital Requirements and Bank Balance Sheets: Reviewing the Basics What s on a bank

More information

Don t Run With Your Retirement Money

Don t Run With Your Retirement Money Don t Run With Your Retireent Money Understanding Your Resources and How Best to Use The A joint project of The Actuarial Foundation and WISER, the Woen s Institute for a Secure Retireent WISER THE WOMEN

More information

Copyright 2009 Pearson Education Canada

Copyright 2009 Pearson Education Canada The consequence of failing to adjust the discount rate for the risk implicit in projects is that the firm will accept high-risk projects, which usually have higher IRR due to their high-risk nature, and

More information

F3 Financial Strategy. Examiner s Answers

F3 Financial Strategy. Examiner s Answers Strategic Level Paper F3 Financial Strategy March 2014 exaination Exainer s Answers Question One Rationale Question One focusses on an external party a hotel chain, which is hoping to set up a hotel in

More information

These ads downplay the terms and risks of reverse mortgages and confuse senior consumers by making them seem too good to pass up.

These ads downplay the terms and risks of reverse mortgages and confuse senior consumers by making them seem too good to pass up. WISERWoan Fall 2015 A QUARTERLY NEWSLETTER FROM THE WOMEN S INSTITUTE FOR A SECURE RETIREMENT Reverse Mortgages and Reverse Mortgage Scas There s a growing buzz about reverse ortgages infoercials, pop-up

More information

There are two types of returns that an investor can expect to earn from an investment.

There are two types of returns that an investor can expect to earn from an investment. Benefits of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money. We will discuss some

More information

OpenGamma Documentation Bond Pricing

OpenGamma Documentation Bond Pricing OpenGaa Docuentation Bond Pricing Marc Henrard arc@opengaa.co OpenGaa Docuentation n. 5 Version 2.0 - May 2013 Abstract The details of the ipleentation of pricing for fixed coupon bonds and floating rate

More information

Accounting Principles

Accounting Principles Accounting Principles STUDENT STUDY PACK PRBA001 Accounting Principles All rights reserved Revision 1 Contents Week 8: Companies: Share Capital and the Balance Sheet...3 Learning outcomes for this week...3

More information

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability A) Liquidity Ratio : - Ratio Analysis 1) Current ratio = Current asset Current Liability 2) Quick ratio or Acid Test ratio = Quick Asset Quick liability Quick Asset = Current Asset Stock Quick Liability

More information

CPD Spotlight Quiz September 2012. Working Capital

CPD Spotlight Quiz September 2012. Working Capital CPD Spotlight Quiz September 2012 Working Capital 1 What is working capital? This is a topic that has been the subject of debate for many years and will, no doubt, continue to be so. One response to the

More information

Get the facts: Capital guaranteed or protected investments 1

Get the facts: Capital guaranteed or protected investments 1 Get the facts: Capital guaranteed or protected investments 1 Wouldn t it have been great if you had been able to protect your investments from tumbling investment markets during the global financial crisis?

More information

Chapter 6 The cash flow statement

Chapter 6 The cash flow statement Chapter 6 The cash flow statement The last four chapters have been spent looking at the balance sheet and income statement and how to use them. In this chapter, we will move on to arguably the most revealing

More information

Investing in agribusiness schemes?

Investing in agribusiness schemes? Investing in agribusiness schemes? Independent guide for investors about agribusiness schemes This guide is for you, whether you re an experienced investor or just starting out. About ASIC The Australian

More information

Bond Mutual Funds. a guide to. A bond mutual fund is an investment company. that pools money from shareholders and invests

Bond Mutual Funds. a guide to. A bond mutual fund is an investment company. that pools money from shareholders and invests a guide to Bond Mutual Funds A bond mutual fund is an investment company that pools money from shareholders and invests primarily in a diversified portfolio of bonds. Table of Contents What Is a Bond?...

More information

Financial Aid Workshop Promotional Kit

Financial Aid Workshop Promotional Kit Financial Aid Workshop Prootional Kit CFWV.COM West Virginia s Free College-Planning Resource The College Foundation of West Virginia, online at www.cfwv.co, provides FREE resources to help students and

More information

TIME VALUE OF MONEY PROBLEMS CHAPTERS THREE TO TEN

TIME VALUE OF MONEY PROBLEMS CHAPTERS THREE TO TEN TIME VLUE OF MONEY PROBLEMS CHPTERS THREE TO TEN Probles In how any years $ will becoe $265 if = %? 265 ln n 933844 9 34 years ln( 2 In how any years will an aount double if = 76%? ln 2 n 9 46 years ln76

More information

Facilitating debt raising

Facilitating debt raising REGULATORY GUIDE 213 Facilitating debt raising May 2012 About this guide This guide is for listed entities, their advisers and investors involved in offers of quoted corporate bonds or convertible notes.

More information

Advantages and disadvantages of investing in the Stock Market

Advantages and disadvantages of investing in the Stock Market Advantages and disadvantages of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money.

More information

Bonds and preferred stock. Basic definitions. Preferred(?) stock. Investing in fixed income securities

Bonds and preferred stock. Basic definitions. Preferred(?) stock. Investing in fixed income securities Bonds and preferred stock Investing in fixed income securities Basic definitions Stock: share of ownership Stockholders are the owners of the firm Two types of stock: preferred and common Preferred stock:

More information

Software Quality Characteristics Tested For Mobile Application Development

Software Quality Characteristics Tested For Mobile Application Development Thesis no: MGSE-2015-02 Software Quality Characteristics Tested For Mobile Application Developent Literature Review and Epirical Survey WALEED ANWAR Faculty of Coputing Blekinge Institute of Technology

More information

Performance Review for Electricity Now

Performance Review for Electricity Now Performance Review for Electricity Now For the period ending 03/31/2008 Provided By Mark Dashkewytch 780-963-5783 Report prepared for: Electricity Now Industry: 23821 - Electrical Contractors Revenue:

More information

Understanding A Firm s Financial Statements

Understanding A Firm s Financial Statements CHAPTER OUTLINE Spotlight: J&S Construction Company (http://www.jsconstruction.com) 1 The Lemonade Kids Financial statement (accounting statements) reports of a firm s financial performance and resources,

More information

Financial Ratio Cheatsheet MyAccountingCourse.com PDF

Financial Ratio Cheatsheet MyAccountingCourse.com PDF Financial Ratio Cheatsheet MyAccountingCourse.com PDF Table of contents Liquidity Ratios Solvency Ratios Efficiency Ratios Profitability Ratios Market Prospect Ratios Coverage Ratios CPA Exam Ratios to

More information

GUIDE TO THE SURVEY FINANCIAL BALANCE STATISTICS

GUIDE TO THE SURVEY FINANCIAL BALANCE STATISTICS 1(16) GUIDE TO THE SURVEY FINANCIAL BALANCE STATISTICS 1 GENERAL INFORMATION... 3 2 DEFINITION OF DATA... 3 2.1 Positions... 3 2.2... 3 2.3... 4 3 DEFINITION OF VARIABLES... 4 3.1 Financial assets... 4

More information

Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About:

Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About: Loan Lessons Course Objectives Learn About: Different Types of Loans How to Qualify for a Loan Different Types of Interest The Low-Down on Loans, Interest and Keeping Your Head Above Water usbank.com/financialeducation

More information

Money Math for Teens. Dividend-Paying Stocks

Money Math for Teens. Dividend-Paying Stocks Money Math for Teens Dividend-Paying Stocks This Money Math for Teens lesson is part of a series created by Generation Money, a multimedia financial literacy initiative of the FINRA Investor Education

More information

Stock Market for Beginners November 2013

Stock Market for Beginners November 2013 Stock Market for Beginners November 2013 What is a share? If you own a share, you own a portion of a company. In the same way you can see your ownership of a company as a slice of pie, cut out of a bigger

More information

CHAPTER 20 LONG TERM FINANCE: SHARES, DEBENTURES AND TERM LOANS

CHAPTER 20 LONG TERM FINANCE: SHARES, DEBENTURES AND TERM LOANS CHAPTER 20 LONG TERM FINANCE: SHARES, DEBENTURES AND TERM LOANS Q.1 What is an ordinary share? How does it differ from a preference share and debenture? Explain its most important features. A.1 Ordinary

More information

Combined Business Loan

Combined Business Loan Combined Business Loan Terms and Conditions This document sets out your loan or facility s terms and conditions In this document we ve explained the terms and conditions applying to your ANZ Business Loan

More information

Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About:

Loan Lessons. The Low-Down on Loans, Interest and Keeping Your Head Above Water. Course Objectives Learn About: usbank.com/student financialgenius.usbank.com Course Objectives Learn About: Different Types of Loans How to Qualify for a Loan Different Types of Interest Loan Lessons The Low-Down on Loans, Interest

More information

ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION

ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION OCTOBER 2006 Table of Contents 1. INTRODUCTION... 3 2. FINANCIAL RATIOS FOR COMPANIES (INDUSTRY - COMMERCE - SERVICES) 4 2.1 Profitability Ratios...4 2.2 Viability

More information

Managing Home Equity to Build Wealth By Ray Meadows CPA, CFA, MBA

Managing Home Equity to Build Wealth By Ray Meadows CPA, CFA, MBA Managing Home Equity to Build Wealth By Ray Meadows CPA, CFA, MBA About the Author Ray Meadows is the president of Berkeley Investment Advisors, a real estate brokerage and investment advisory firm. He

More information

PERFORMANCE METRICS FOR THE IT SERVICES PORTFOLIO

PERFORMANCE METRICS FOR THE IT SERVICES PORTFOLIO Bulletin of the Transilvania University of Braşov Series I: Engineering Sciences Vol. 4 (53) No. - 0 PERFORMANCE METRICS FOR THE IT SERVICES PORTFOLIO V. CAZACU I. SZÉKELY F. SANDU 3 T. BĂLAN Abstract:

More information

Credit cards & store cards

Credit cards & store cards Factsheet July 2012 Credit cards are a convenient form of shortterm finance. Store cards are credit cards issued by particular retail stores. Both types of card are easy to get and easy to use. With a

More information

Major Sources of Financing Solutions to Chapter Review Questions

Major Sources of Financing Solutions to Chapter Review Questions Chapter 2: Major Sources of Financing Solutions to Chapter Review Questions 1. Debt finance available in Australia: Trade Credit Bank Overdraft Trade Bills Promissory Notes Commercial Bills Inter-Company

More information

Understanding a Firm s Different Financing Options. A Closer Look at Equity vs. Debt

Understanding a Firm s Different Financing Options. A Closer Look at Equity vs. Debt Understanding a Firm s Different Financing Options A Closer Look at Equity vs. Debt Financing Options: A Closer Look at Equity vs. Debt Business owners who seek financing face a fundamental choice: should

More information

Home Loan. This document sets out your loan s terms and conditions. Some key information about your loan. Terms and Conditions

Home Loan. This document sets out your loan s terms and conditions. Some key information about your loan. Terms and Conditions Home Loan Terms and Conditions This document sets out your loan s terms and conditions In this document we ve explained the terms and conditions applying to your ANZ Home Loan. It includes key information

More information

nabtrade Exchange Traded Options Product Disclosure Statement (PDS)

nabtrade Exchange Traded Options Product Disclosure Statement (PDS) nabtrade Exchange Traded Options Product Disclosure Statement (PDS) WealthHub Securities Limited ABN 83 089 718 249 AFSL No. 230704 GPO Box 4545 Melbourne VIC 3001 Telephone 13 13 80 nabtrade.com.au Preparation

More information

Sources of, and raising short-term finance

Sources of, and raising short-term finance E. BUSINESS FINANCE 1. Sources of, and raising short-term finance 2. Sources of, and raising long-term finance 3. Internal sources of finance and dividend policy 4. Gearing and capital structure considerations

More information

Owning shares: a step-by-step guide

Owning shares: a step-by-step guide Owning shares: a step-by-step guide Royal Mail achieved an important milestone when it floated on the London Stock Exchange in 2013. Many of you will have received shares in Royal Mail through the Free

More information

Current liabilities - Obligations that are due within one year. Obligations due beyond that period of time are classified as long-term liabilities.

Current liabilities - Obligations that are due within one year. Obligations due beyond that period of time are classified as long-term liabilities. Accounting Fundamentals Lesson 8 8.0 Liabilities Current liabilities - Obligations that are due within one year. Obligations due beyond that period of time are classified as long-term liabilities. Current

More information

11.437 Financing Community Economic Development Class 6: Fixed Asset Financing

11.437 Financing Community Economic Development Class 6: Fixed Asset Financing 11.437 Financing Community Economic Development Class 6: Fixed Asset Financing I. Purpose of asset financing Fixed asset financing refers to the financing for real estate and equipment needs of a business.

More information

Business Loan. This document sets out your loan s terms and conditions. Contents of these terms and conditions. Terms and Conditions

Business Loan. This document sets out your loan s terms and conditions. Contents of these terms and conditions. Terms and Conditions Business Loan Terms and Conditions This document sets out your loan s terms and conditions In this document we ve explained the terms and conditions applying to your ANZ Business Loan. It includes key

More information

Small Business ebook. 5 Steps to a killer social media strategy

Small Business ebook. 5 Steps to a killer social media strategy Sall Business ebook 5 Steps to a killer social edia strategy About the authors John Keepax and Frank Irias offer ore than 32 years of cobined experience in the areas of John Keepax Creative Director /

More information

Prepared by the National Association of Insurance Commissioners. This guide does not endorse any company or policy.

Prepared by the National Association of Insurance Commissioners. This guide does not endorse any company or policy. Prepared by the National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association of state insurance regulatory officials. This association helps the

More information

INTERACTIVE BROKERS DISCLOSURE STATEMENT FOR BOND TRADING

INTERACTIVE BROKERS DISCLOSURE STATEMENT FOR BOND TRADING INTERACTIVE BROKERS DISCLOSURE STATEMENT FOR BOND TRADING THIS DISCLOSURE STATEMENT DISCUSSES THE CHARACTERISTICS AND RISKS OF TRADING BONDS THROUGH INTERACTIVE BROKERS (IB). BEFORE TRADING BONDS YOU SHOULD

More information

Use this section to learn more about business loans and specific financial products that might be right for your company.

Use this section to learn more about business loans and specific financial products that might be right for your company. Types of Financing Use this section to learn more about business loans and specific financial products that might be right for your company. Revolving Line Of Credit Revolving lines of credit are the most

More information

How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute

How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute Other free books by BizMove that may interest you: Free starting a business books Free management skills

More information

Key Points to Borrowing Money

Key Points to Borrowing Money Key Points to Borrowing Money Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan isn't always easy. Before you approach your banker for a loan, it is

More information

Risk Warning Notice. Introduction

Risk Warning Notice. Introduction First Equity Limited Salisbury House London Wall London EC2M 5QQ Tel 020 7374 2212 Fax 020 7374 2336 www.firstequity.ltd.uk Risk Warning Notice Introduction You should not invest in any investment product

More information

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes:

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes: Business Studies - Financial Planning and Management Study Notes Financial Planning and Management Study Notes: The Role of Financial Planning: The strategic role of financial management: Organisational

More information

The public private partnership paradox

The public private partnership paradox The public private partnership paradox Stephen Gray * UQ Business School, University of Queensland Jason Hall UQ Business School, University of Queensland Grant Pollard Value Decisions ABSTRACT A public

More information

ACCOUNTING III Cash Flow Statement & Linking the 3 Financial Statements. Fall 2015 Comp Week 5

ACCOUNTING III Cash Flow Statement & Linking the 3 Financial Statements. Fall 2015 Comp Week 5 ACCOUNTING III Cash Flow Statement & Linking the 3 Financial Statements Fall 2015 Comp Week 5 CODE: CA$H Administrative Stuff Send an email to trentnelson@college.harvard.edu if you have not been added

More information

Success in Renewables. Glossary of Terms Investment and Renewables

Success in Renewables. Glossary of Terms Investment and Renewables Success in Renewables Glossary of Terms Investment and Renewables If you re new to renewable energy or investment, then it can be a minefield of new language and terminology. What seems totally normal

More information

I m going to cover 7 key points about FCF here:

I m going to cover 7 key points about FCF here: Free Cash Flow Overview When you re valuing a company with a DCF analysis, you need to calculate their Free Cash Flow (FCF) to figure out what they re worth. While Free Cash Flow is simple in theory, in

More information

Home loans. How do home loans work? TIP Work out how much you can afford to borrow. Factsheet. August 2011

Home loans. How do home loans work? TIP Work out how much you can afford to borrow. Factsheet. August 2011 Factsheet August 2011 Buying your own home may be one of the biggest financial decisions you ll ever make. While a few fortunate people may already have enough money to buy a home outright, most will find

More information

ADJUSTING FOR QUALITY CHANGE

ADJUSTING FOR QUALITY CHANGE ADJUSTING FOR QUALITY CHANGE 7 Introduction 7.1 The easureent of changes in the level of consuer prices is coplicated by the appearance and disappearance of new and old goods and services, as well as changes

More information

Double-Entry Bookkeeping: Assets and Liabilities

Double-Entry Bookkeeping: Assets and Liabilities Double-Entry Bookkeeping: Assets and Liabilities The purpose of this chapter is to introduce the fundamentals of double-entry bookkeeping and its role in accounting for business. The objectives of accounting

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

More information

Analysis of the purchase option of computers

Analysis of the purchase option of computers Analysis of the of coputers N. Ahituv and I. Borovits Faculty of Manageent, The Leon Recanati Graduate School of Business Adinistration, Tel-Aviv University, University Capus, Raat-Aviv, Tel-Aviv, Israel

More information

Additional borrowing guide 1. Additional borrowing. We re with you every step of the way

Additional borrowing guide 1. Additional borrowing. We re with you every step of the way Additional borrowing guide 1 Additional borrowing We re with you every step of the way Additional borrowing guide 2 What is additional borrowing? Sometimes you may be able to borrow extra money from your

More information

Fixed Deferred Annuities

Fixed Deferred Annuities Buyer Buyer s Guide to: s Guide to: Fixed Deferred Annuities Prepared by the Prepared by the National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association

More information

Fact sheet Demystifying fixed income investments

Fact sheet Demystifying fixed income investments Fact sheet Demystifying fixed income investments Super fund members as well as individual investors have a huge range of options to choose from for the investment of their savings. Fixed income investments

More information

INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO

INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO INVESTING Contents Helping you reach your financial goals 3 Introducing the different types of investments 4 Where could you invest? 4 Where

More information

Mortgage Fraud. Table of Contents. Home Equity Scams Choosing a Loan Home Equity Dos Home Equity Don ts

Mortgage Fraud. Table of Contents. Home Equity Scams Choosing a Loan Home Equity Dos Home Equity Don ts Mortgage Fraud Table of Contents Home Equity Scams Choosing a Loan Home Equity Dos Home Equity Don ts Reverse Mortgages Home Loan Law HOEPA Prevents For more information on Mortgage Fraud visit: You could

More information

Part 9. The Basics of Corporate Finance

Part 9. The Basics of Corporate Finance Part 9. The Basics of Corporate Finance The essence of business is to raise money from investors to fund projects that will return more money to the investors. To do this, there are three financial questions

More information

Investments at a glance

Investments at a glance Investments at a glance Canadian Securities Administrators Securities regulators from each province and territory have teamed up to form the Canadian Securities Administrators, or CSA for short. The CSA

More information

What to consider in an investment

What to consider in an investment Course 4 What to consider in an investment Topic 1: Return on investment... 3 Evaluating an investment... 3 Return on investment... 3 Income... 3 Frequency of income payments... 4 Capital growth... 4 Comparing

More information

Understanding Hybrid Securities. ASX. The Australian Marketplace

Understanding Hybrid Securities. ASX. The Australian Marketplace Understanding Hybrid Securities ASX. The Australian Marketplace Disclaimer of Liability Information provided is for educational purposes and does not constitute financial product advice. You should obtain

More information

Understanding Managed Funds

Understanding Managed Funds ... Understanding Managed Funds Contact us If you would like to know more about how AMP Capital can help you, please visit ampcapital.com.au, or contact one of the following: Financial Planners Personal

More information

Mutual Fund Investing Exam Study Guide

Mutual Fund Investing Exam Study Guide Mutual Fund Investing Exam Study Guide This document contains the questions that will be included in the final exam, in the order that they will be asked. When you have studied the course materials, reviewed

More information

Understanding Bonds. ASX. The Australian Marketplace

Understanding Bonds. ASX. The Australian Marketplace Understanding Bonds ASX. The Australian Marketplace Disclaimer of Liability Information provided is for educational purposes and does not constitute financial product advice. You should obtain independent

More information

( C) CLASS 10. TEMPERATURE AND ATOMS

( C) CLASS 10. TEMPERATURE AND ATOMS CLASS 10. EMPERAURE AND AOMS 10.1. INRODUCION Boyle s understanding of the pressure-volue relationship for gases occurred in the late 1600 s. he relationships between volue and teperature, and between

More information

Reverse Mortgage Nightmares Should Never Happen Top 10 Misconceptions About Reverse Mortgages 14

Reverse Mortgage Nightmares Should Never Happen Top 10 Misconceptions About Reverse Mortgages 14 Reverse Mortgage Nightmares Should Never Happen Top 10 Misconceptions About Reverse Mortgages 14 Searching online for information about reverse mortgages, I came across article after article about how

More information

Life Insurance Buyer s Guide

Life Insurance Buyer s Guide Life Insurance Buyer s Guide This guide can help you when you shop for life insurance. It discusses how to: Find a Policy The Meets Your Needs and Fits Your Budget Decide How Much Insurance You Need Make

More information

Understanding Financial Statements. For Your Business

Understanding Financial Statements. For Your Business Understanding Financial Statements For Your Business Disclaimer The information provided is for informational purposes only, does not constitute legal advice or create an attorney-client relationship,

More information

Investments GUIDE TO FUND RISKS

Investments GUIDE TO FUND RISKS Investments GUIDE TO FUND RISKS CONTENTS Making sense of risk 3 General risks 5 Fund specific risks 6 Useful definitions 9 2 MAKING SENSE OF RISK Understanding all the risks involved when selecting an

More information

Danske Bank acquires Sampo Bank

Danske Bank acquires Sampo Bank Danske Bank acquires Sapo Bank Overview of Sapo Bank Noveber 9, 2006 Disclaier This presentation is not for release, publication or distribution in Australia, Canada, the Hong Kong Special Adinistrative

More information