Tuesday 14 March 2017

Medium Term Note Fixed Income Security





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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