I see no let up in the demand for corporate bonds as clients have preferred investment vehicles that give a relatively safe investment
~Lee Green (KMI Consultants)~
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(PRWEB UK) 23 April 2012
Despite some financial pundits from the largest investment houses worldwide believing now is not the time to invest into corporate bonds, one offshore financial adviser believes otherwise.
The size of the US market of corporate bonds is currently around 7.7 Trillion US$ (source Securities Industry and Financial Markets Association (SIFMA) 2011), this is 24% of the total US bond market, meaning some 32 trillion dollars are invested into US bonds of one type or another including treasuries.
The total World Bond market is in excess of 100 US$ Trillion if we apply our 24% of this being corporate bonds then we get 24 US$ Trillion. Lee Green from KMI Corporate Bonds sees no let up in the demand for corporate bonds as clients have preferred investment vehicles that give a relatively safe investment. If blue chip companies are used, and they are considerably better than bank rate annual rate of returns, then safer investments are made. Accordingly KMI have set up their new site which is already proving of great interest.
The rationale for the web site is primarily to provide up to date information on the availability of corporate bonds to the retail investor. This information until relatively recently was only available to institutional investors and as such these bonds were in very large denominations often €/£/$ one million and more. Things have changed but there is still some difficulty in accessing information on corporate bonds, KMI, with this new web site, intends to change this.
KMI expects current pressure on worldwide stock markets to continue in the light of continued quantum easing and therefore continued preference for corporate bonds with investors.