Bonds (Corporate and Real Estate)
Stable and Consistent Performance
A bond is a financial debt instrument issued by an entity to raise funds.
When an investor buys a bond, he or she lends money to the issuer in exchange for the promise of repayment at a specified future date, called maturity.
During the life of the bond, the issuer usually pays the investor interest at regular intervals, known as coupons.
Why consider buying bonds as part of a portfolio?
Following the significant rise in interest rates, bonds have become more attractive to investors, offering an interesting balance between risk and return.
Lower volatility than equities
A bond must be redeemed at a predetermined date. Unlike shares, whose value fluctuates according to the company’s financial health, a bond must be repaid at par value on maturity, if the issuer can pay its debts.
Bankruptcies of companies, banks or countries are fairly rare, making the risk for a bond investor generally lower than for equities.
Default risk is a key risk when buying bonds. An issuer may be financially sound at the outset, but run into difficulties later on. As long as it can repay, it is legally obliged to do so, and the investor will receive his return and recover his invested capital.
Regular, predictable income
Bonds offer an interest rate set at the time of issuance, which can be either fixed or variable. Bondholders therefore know in advance the income they can expect, and its frequency.
The interest rate on a bond is called the coupon, providing regular, predictable income. This differs from equities, some of which pay dividends whose value may vary.
Most bonds must be repaid on a specific date, known as the maturity date, usually expressed in years from the issue date.
CMK Finance
A wealth of expertise to get the best out of bonds
Our expertise lies in identifying the best bonds to bring you yield, while limiting and hedging duration risks.
We have therefore selected the best opportunities, while remaining on the lookout for any new opportunities that may arise:
Corporate bonds: private credit
Surfing on the momentum of private credit, there are many opportunities to be seized in this asset class. Today, it’s the best risk/return ratio we’ve found. Solid bank guarantees
12% p.a, quarterly commitment
Real estate bonds
Real estate transactions, renovations or franchise restructuring. Solid guarantees through security trusts
10 to 13% p.a. with terms of 1 to 3 years
Our expertise lies in identifying the most promising opportunities on the private credit market, the corporate bond segment, offering our customers privileged access.
This asset class boasts one of the most attractive risk/return ratios on the market.
Mael and Camille, CMK cofounders