Advantages of bonds When a company issues bonds, it is generally able to lock in a long-term interest rate that is lower than the rate a bank would charge. The lower the interest rate for the borrowing company, the less the loan ends up costing.
Additionally, when a company issues bonds instead of pursuing a long-term loan, it generally has more flexibility to operate as it sees fit. Bank loans tend to come with certain operating restrictions that could limit a company's ability to grow physically and financially. For example, some banks prohibit their borrowers from making further acquisitions until their loans are repaid in full. Bonds, by contrast, do not come with operating limitations.
Finally, some long-term loans are structured to include variable interest rates, which means a company's rate could go up significantly over time. When a company issues bonds, it is able to lock in a fixed interest rate for the life of the bonds, which could be 10 years, 20 years, or more.
Advantages of long-term loans Unlike bonds, the terms of a long-term loan can often be modified and restructured to benefit the borrowing party. When a company issues bonds, it is committing to a fixed payment schedule and interest rate, whereas some bank loans offer more flexible refinancing options.
Furthermore, obtaining a bank loan is generally less of an administrative hassle than going through the process of issuing bonds. To sell bonds to the public, the issuing company must spend time and money on advertising while taking steps to ensure that it adheres to SEC requirements. The costs of obtaining a bank loan can therefore be significantly lower than the costs involved in borrowing money through bonds.
A very good sharing from @ charles_cty and thank you very much to you . Company issues bonds + 3 QTR 2017 results = TP Rm 4.50 ( minimum ) or at least . Press Metal boleh dan tetap boleh . Always listen to the CEO's message . Terima kasih banyak-banyak .
Do you think Sumitomo will leave Pmetal? Sumitomo have invested in various mill in SEA. Don't be so negative, when u have exit from Pmetal. Pmetal price is on uptrend, whether buy now or just c only.
Peng. It not bout negative. It about will or will not. Did u read the news? Read bottom part. I ho ask telus how many lot i keep in pmetal. Now i feel more want add if can tp 5
Thank you @Peng1185 , if can hold until next year 2018 Gong Xi Fa Cai , Pmetal will reward you 'Kaw Kaw ' ( Ang Pow besar or wang besar ) . Pmetal always boleh dan tetap boleh .
Now ' kaki-kaki ' in JCY ( i3investor forum ) gaduh sangat kuat hingga tak henti-henti . As i mentioned earlier please don't pick the wrong counters . Sama-sama faham sudahlah , tak payah cakap panjang lebar .
Ini kali , 3 QRT 2017 results amat luar biasa . Terima kasih banyak -banyak kepada Press Metal Aluminium Holding Berhad . Always percayalah the CEO of Press Metal .
@Peng1185 , terima kasih dan sama-sama . Pmetal already rescued so many investors and also for those keep on follow up and listen to Tan Sri Paul Koon 's message . Pmetal memang boleh dan tetap boleh .
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
happy123
213 posts
Posted by happy123 > 2017-10-16 11:39 | Report Abuse
anyone knows what is that coupon yield?