Tag: bonds

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Birmingham Sports: Latest Market Update and Analysis

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Major League Football Stock Analysis: Should Investors Buy or Sell?

Major League Football (MLFB) is up 50% over the past 24 hours as of 09:03 on Thursday 31 August 2023 Central European Time. A Major League Football stock can currently be bought for around $0 on global exchanges. The current supply of Major League Football shares is 1.5B. Major League Football has a current market […]

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New subordinated corporate bonds offer high interest rates and sometimes offer almost double the yield of senior bonds.

(Foto: DigitalVision Vectors/Getty Images)

Frankfurt Annual interest of more than seven percent for a bond denominated in euros: such offers make investors sit up and take notice, but at the same time make them skeptical. Because seven percent interest is a lot and indicates a high risk. High risk usually means that the borrower has such bad credit that the interest and repayment of the bond are uncertain.

But there is a niche in the bond market in which such promises of returns are more the rule than the exception after the interest rate hike by the European Central Bank – and that from companies with good credit ratings such as the Spanish telephone company Telefónica or, most recently, the German car manufacturer Volkswagen.

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Write a title for this content percent sign New subordinated corporate bonds offer high interest rates and sometimes offer almost double the yield of senior bonds. (Foto: DigitalVision Vectors/Getty Images) Frankfurt Annual interest of more than seven percent for a bond denominated in euros: such offers make investors sit up and take notice, but at the same time make them skeptical. Because seven percent interest is a lot and indicates a high risk. High risk usually means that the borrower has such bad credit that the interest and repayment of the bond are uncertain.But there is a niche in the bond market in which such promises of returns are more the rule than the exception after the interest rate hike by the European Central Bank – and that from companies with good credit ratings such as the Spanish telephone company Telefónica or, most recently, the German car manufacturer Volkswagen. Read on now Get access to this and every other article in theWeb and in our app free of charge for 4 weeks. Further Read on now Get access to this and every other article in the web and in our app. Further

percent sign New subordinated corporate bonds offer high interest rates and sometimes offer almost double the yield of senior bonds. (Foto: DigitalVision Vectors/Getty Images) Frankfurt Annual interest of more than seven percent for a bond denominated in euros: such offers make investors sit up and take notice, but at the same time make them skeptical. Because […]

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A spokesman for Benkos Signa Holding said the company was aware of the investigation but was “relatively relaxed” about it “due to the excellent quality of our prime real estate portfolio”. Signa has closed around a dozen deals in Germany, Austria and Switzerland in recent months, totaling about 2 billion euros ($2.16 billion). In any case, the price was “significantly higher” than the most recent bank valuation, according to the spokesman.

A statement from an ECB spokesman was declined.

Benko’s wide-ranging real estate group is among companies at the epicenter of the turbulence in the European commercial real estate market as the sector faces sharply falling valuations and rising financing costs. Signa Prime, Benko’s larger real estate investment firm, posted a €1.16 billion revaluation loss last year, cutting the book value of real estate assets by nearly 6%, the Handelsblatt reported earlier.

The ECB’s actions follow months of scrutiny of banks working with Signa in Austria, Germany and other European countries, the people said. German insurance companies also have an exposure to Benko, one of the people said.

Some regulators are critical of the probe’s design because focusing on Benko’s businesses risks stigmatizing them in the eyes of lenders, the people said. While the ECB has previously questioned banks about risks related to individual companies, an in-depth investigation of such exposures is unusual, they said.

The Signa spokesman said the proceeds from the dozen sales over the past few months totaled 250% more than the outstanding bank loans for those assets. He also said that Signa Real Estate’s consolidated total debt, or loan-to-value ratio, is still less than 50%.

Signa Prime was downgraded to A- with a negative outlook by CreditReform last November due to falling property valuations in the sector and rising funding costs for Signa specifically. CreditReform withdrew the review earlier this month after Signa objected.

The ECB has previously indicated that the commercial real estate market faces challenges from rising interest rates, soaring construction costs and the trend towards remote working.

Write a title for this contentA spokesman for Benkos Signa Holding said the company was aware of the investigation but was “relatively relaxed” about it “due to the excellent quality of our prime real estate portfolio”. Signa has closed around a dozen deals in Germany, Austria and Switzerland in recent months, totaling about 2 billion euros ($2.16 billion). In any case, the price was “significantly higher” than the most recent bank valuation, according to the spokesman.A statement from an ECB spokesman was declined.Benko’s wide-ranging real estate group is among companies at the epicenter of the turbulence in the European commercial real estate market as the sector faces sharply falling valuations and rising financing costs. Signa Prime, Benko’s larger real estate investment firm, posted a €1.16 billion revaluation loss last year, cutting the book value of real estate assets by nearly 6%, the Handelsblatt reported earlier.The ECB’s actions follow months of scrutiny of banks working with Signa in Austria, Germany and other European countries, the people said. German insurance companies also have an exposure to Benko, one of the people said.Some regulators are critical of the probe’s design because focusing on Benko’s businesses risks stigmatizing them in the eyes of lenders, the people said. While the ECB has previously questioned banks about risks related to individual companies, an in-depth investigation of such exposures is unusual, they said.The Signa spokesman said the proceeds from the dozen sales over the past few months totaled 250% more than the outstanding bank loans for those assets. He also said that Signa Real Estate’s consolidated total debt, or loan-to-value ratio, is still less than 50%.Signa Prime was downgraded to A- with a negative outlook by CreditReform last November due to falling property valuations in the sector and rising funding costs for Signa specifically. CreditReform withdrew the review earlier this month after Signa objected.The ECB has previously indicated that the commercial real estate market faces challenges from rising interest rates, soaring construction costs and the trend towards remote working.

A spokesman for Benkos Signa Holding said the company was aware of the investigation but was “relatively relaxed” about it “due to the excellent quality of our prime real estate portfolio”. Signa has closed around a dozen deals in Germany, Austria and Switzerland in recent months, totaling about 2 billion euros ($2.16 billion). In any […]

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