The recent developments in our local financial sector have once again resurfaced the issue of risk and safety of our investments. As investors, we frequently neglect to ask the important questions that are needed to assess the safety of our banks, pension savings, investment houses or insurance companies.
Assessing the Safety of your bank/investment house
For the purpose of a financial institution, safety can be assessed by looking at the size of a company’s capital base relative to the size of its assets. This is an indication of the institution’s degree of leverage. “This is simply the amount of money the institution has saved...
WHO INVESTS IN BONDS
Today we are going to look at the following two areas: Who are the people or institutions that usually invest in bonds; (and) What are their reasons for doing so?
First, however, we’ll do a quick recap of some of the basic facts about bonds. A bond is a form of I...
Feb 19, 2003
HOW RISKY ARE BONDS?
Last week we established that bonds are fixed interest investments that give higher returns than money market investments and individual investors or institutions that are looking for income and modest growth in the medium to long term investments would find them...
Feb 19, 2003
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