A Medium Term Note (MTN) matures in 5 to 10 years which is a
corporate bond with high investment and high returns. Though you can invest
from 9 months to 30 years, the common ones are 5 or 10 years. Keeping the term of
investment in mind, you can compare it with other investments for interest and
safety. These are structured debt securities with relatively low risk compared
to stock market investments.
Why MTN?
MTN investments are required to fulfill the needs of US short term finance markets, and as the need is continuous, the
investments are continuous. The insurance for capital protection can provide
you the basic security. The rate of interest is higher than the short-term notes, and the investments accepted are as per market demands. Those who
do not want to invest in the short term
or long term find this option as the best. If you have a planned expense after five years, the money can stay invested till
that time working for you. The businesses can get continuous cash flow through
this tool.
MTN Maturity
As the rates relate to the call options, the corporates can retire or call the
bond as per need before maturity also. In that case, the business can take
advantage of lower interest rates. If your bond has no call able option, then
the risk is low, and the rate of interest
offered is also low.
Best Option
at Present
Barrington Howe is offering an EMTN
at 9.85% per annum, and Loan Note has 12
to 14% interest. With a minimum investment of £100,000,
you can invest in a five-year EMTN and
enjoy a fixed interest. With ahigh
percentage of capital cover and capital insurance, it is a good option for high
net worth investment. They are a multi-disciplinary investment consultancy, and you can call them now to
invest in EMTN.
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