A large amount of corporate bonds are distributed through the banking system. Photo: Đ.T
Ham high interest rates, individual investors “closed eyes” business loans
Only in the first half of this year, real estate businesses have issued nearly US $ 2 billion in corporate bonds, half of which “go” into individual investors’ pockets. In other words, tens of thousands of investors have poured nearly $ 1 billion to businesses (mostly real estate businesses) in the form of corporate bonds, regardless of financial analysis reports, collateral, businesses underwriting
Understand the psychology of easygoing, high interest interest of investors, over the past time, many businesses have intentionally broken down the issuance (held 10-50 times / year), extending the time to issue. Issue each round to “lure” retail investors.
Before the recklessness of many investors, recently, the Ministry of Finance warned the third individual investors to be cautious because there is a possibility that it will not gain money to invest in corporate bonds (both principal and interest. If the business is in trouble. In the context of Covid-19 recently returned, the risk of losing money became even more present.
“Most investors in the market buy corporate bonds because of high interest rates, many investors do not even know the financial statements analysis, have never heard the name of the issuing business, only buy bonds due to the trust that the bank is the issuer. This is very naive, because the bank is only a distributor, there is no obligation to accept any liability if the risk occurs “. Nguyen Tri Hieu, banking expert said.
Many experts believe that it is necessary to “block” individual investors from the primary bond market, because the risks are too great, while the ability to analyze and assess risks of fish investors The kernel has almost no.
Talking to reporter of the Vietnam Investment Review, Assoc. Prof. Dr. Nguyen Khac Quoc Bao (Ho Chi Minh City University of Economics) said that in the long term, so that investors can not only look at interest rates, issuing businesses are not only competitive. With interest rate competition, the most important factor is to develop the secondary market.
“The corporate bond trading market must be developed, just like the stock market. At that time, the profit from corporate bonds, in addition to interest rates, is also the profits from buying and selling. So, only “genuine” bonds of reputable new issuers with good liquidity and ability to increase prices. Once this is done, investors will only choose issuing businesses with good capacity, not just look at interest rates. Then, the market will develop healthily, there is no room for junk bonds, “said Quoc Bao.
There is a lack of tools for individual investors to identify risks
When the risk of corporate bond market shows signs of increase, experts suggest, it is necessary to come up with many solutions to limit risks for investors, especially individual investors.
TS Can Van Luc, chief economist of BIDV, said that in countries around the world, credit rating is one of the conditions for businesses to issue bonds and is also a basis for investors to choose. . Financial statements of issuing businesses must also follow international standards. This is a requirement for investors to refer and make a decision. However, these regulations are not mandatory in Vietnam.
It is known that the Vietnam Bond Market Association is promoting the establishment of a credit rating company. Meanwhile, from June 2020, FiinGroup has announced that it will start providing credit rating services to businesses and investors.
However, until the end of July 2020, exchanging with the reporter of the Vietnam Investment Review, Mr. Nguyen Quang Thuan, Chairman and General Director of FiinGroup, said that the new company only gave the credit rating to the issuer. For individual votes, it is expected that in September 2020, there will be the first case of credit rating for public offering businesses.
Although the corporate bond market has many factors to be rectified, experts believe that it is still necessary to encourage the development of this market to diversify the capital market.
“Businesses need many channels to raise capital other than banks. There are roads that are several kilometers long and have more than a dozen banks, more than convenience stores. This is unreasonable. In fact, if banks are the exclusive supply channel, there will be many consequences, so other capital mobilization channels, including corporate bonds, must be developed. Rectifying “this market is necessary to be more professional and transparent,” said Mr. Nguyen Khac Quoc Bao.