Corporate Bond Offerings 2012: US Companies vs International
When it comes to the 2012 corporate bond offerings many investors compare US companies versus international choices. International companies may offer a more attractive rate in some cases but there may be differences in currencies and trading regulations. Foreign corporate bonds may face a higher risk of political instability and economic uncertainty but the potential rewards reflect these bigger risks. One American company bond that has a very high trading volume is Morgan Stanley, and another is Genworth Financial Inc., symbol GNW. Genworth has made a good comeback since 2009 and the company is back on solid financial footing. Goodyear Tire, NYSE ticker GT, is another American company that has debt securities. Some investors are concerned about pension obligations and other factors that could stifle company growth and profits but bonds issued by Goodyear are still very popular with many investors.
American corporate bond offerings are very diverse and cover a wide range of sectors. 3M Company, ticker MMM, has a Morningstar bond credit rating of AA and is in the Industrial sector. These bonds include a medium level of risk and an intermediate term. The International corporate bond market offers a much larger selection of bonds because this market covers many countries instead of just one. Barclays Bank PLC, ticker BCSPR, is one of the International offerings that attract many investors. This company provides financial services on a global basis, and has received awards for being a green bank that minimizes their impact on the environment.
Telefonica Emisiones S A corporate bond offerings are numerous. This South American company is in the telecommunications sector and services more than 25 countries as well as more than 300 million customers. Telefonica has taken the #7 position in ranking in the Euostoxx 50 listing. The bonds issued by the company have various maturity rates and terms including short term corporate bonds. The risks of the bonds offered are viewed as moderate by many investors. The large operation area and the leading position that Telefonica has within this area makes it a good choice for investors who are willing to take somewhat higher risks. Almost every country around the globe has companies that offer bonds to investors. The requirements to invest in these bonds will depend on many factors including the country where the company is located.
Many investors choose to stick with American corporate bond offerings because of the higher risks and different investing environment that these bonds have. With US companies there is not any currency calculations required because all trading is performed using US dollars. International companies have bonds that involve a higher degree of uncertainty because of the foreign political and economic climate. Some bonds issued by emerging market countries may not have a significant amount of information available and this can make it hard to evaluate the company behind the bond. Corporate bond quotes can not provide all the information that you need as an investor. Some foreign companies may not have an English website or bond literature and this can make it difficult for some investors to research a specific bond and company.