Primary bond placements — is it worth participating in them?

An initial public offering is inherently very similar to an IPO. When a company decides to borrow money from the market, it issues bonds.

Recently, bonds have become much more attractive than deposits, given their yield.

You can buy a lot.

Often, even in short quality securities, there is no opportunity to purchase a significant volume on the secondary market without deteriorating prices. Participation in the IPO will help solve the problem of low liquidity, which is a key advantage of this product.

You can get a premium.

Typically, issuers offer a premium to fair levels when placing new issues to attract attention.

Individual investors in the vast majority of cases receive 100% allocation of the volume of their application. This means, as much as you stated, you will receive the same amount of securities in your portfolio.

How to participate in IPOs?

The mechanism of participation in the initial placement is extremely simple: during the book-building, you need to give an order to submit an order to your broker. Wait for placement. On the date of placement, the paper will appear on the invoice.

Planned ruble placements in August

Europlan — planned yield — 9.09%

Miratorg — planned profitability — 9%

TransFinM — planned profitability — 10.33%

Airplane — No yield announced

All IPOs and bonds in general are convenient to watch

Always analyze securities and buy and sell only in accordance with your strategy.

Don’t have a strategy yet?