Effective Communications in Investor Relations

Corporations worldwide work daily to increase the value of their stock for the investing public. In order to exploit this value, businesses must constantly make every effort to extensively communicate to their investors and potential investors. In view of this, investor relations are a vital part of business strategy, principally in the area of communication. Corporate departments involved with investor directions must make a necessary connection between efficient communication and company goals. Since communication is starting to play such an important role in investor relations, corporate communication programs are being created not only to participate in financial areas, but also to take part in media relations and other public communication.… Read the rest

Case Study: The Story of Warren Buffett

Warren Edward Buffett, born August 30, 1930 is a U.S. investor, and philanthropist. He is one of the most eminent investors in chronicle, the basic shareholder and chief executive officer of Berkshire Hathaway and in 2008 was ordered by Forbes as the 2nd most robust person in the world on an approximated net worth of around $62 billion.

Buffett is often called the “Oracle of Omaha” or the “Sage of Omaha’ and is noted for his adhesiveness to the value investing philosophy and for his own frugalness in spite of his huge riches. Buffett is also a famed altruist, having engaged to impart 85 percentage of his fate to the Gates cornerstone.… Read the rest

Emerging Trends in International Capital Markets

Three interrelated developments in global capital markets are:

  1. The sustained rise in gross capital flows relative to net flows;
  2. The increasing importance of securitized forms of capital flows; and
  3. The growing concentration of financial institutions and financial markets.

Taken together these trends may signal what some others have  referred to as a ‘quiet opening’ of the capital account of the balance of  payments, which is resulting in the development, strengthening and growing  integration of domestic financial systems within the international financial  system. Finance is being rationalized across national borders, resulting in a  breakdown in many countries in the distinction between onshore and offshore  finance.… Read the rest

Emerging Markets for International Capital Investments

Of late emerging markets have become a buzzword among the  international investors for reaping greatest potential rewards which would be  impossible if they stayed put in their affluent hinterlands. The term emerging  markets (EMs) is a collective reference to the stock markets of the developing  nations.  A question, which overpowers a discerning mind, is why the  international investors are looking towards emerging markets for investing  their funds instead of established markets like US? Three reasons can be  given to answer this question.

First, the average total return of emerging  markets  has outstripped those of  developed markets. Investments total return index computed by the IFC (International Finance Corporation)  which  measures the total return for each country based on those stock available to  foreign investors shows that return on investment in IFC composite of EMs is  61.64 per cent higher than the return on investment in US market over the  years.… Read the rest

Syndicated Euro Credits

History of  Syndicated  Euro Credits

Syndicated Euro Credits are in existence  since the late 1960s. The first syndicate was  organized by Bankers Trust in an effort to  arrange a large credit for Austria. During  the early seventies, Euromarkets saw the  demand for Euro credits increasing from  non-traditional and hitherto untested  borrowers. The period after first oil crisis  was marked by a boom phase. To cope with  the increasing demand for funds, lenders  expanded their business without  undertaking due credit appraisal of their  clients or the countries thus financed.  Further, the European banks had short-term  deposits while bulk of borrowers required  long-term deposits.… Read the rest

Types of Foreign Bonds

Yankee Bonds

Yankee Bonds are US dollar denominated issues by foreign  borrowers (usually foreign governments or entities,  supranationals and highly rated corporate borrowers) in  the US bond markets. Yankee bond has certain peculiar  features associated with the US domestic market. SEC  regulates the international bond issues and requires  complete disclosure documents in detail than the  prospectus used in Eurobond issues. Foreign borrower will have to adopt the US accounting practices and the  US credit rating agencies will have to provide rating for  these bonds. These bonds are sponsored by a US  domestic underwriting syndicate and require SEBI (Securities  and Exchange Board of India) registration prior to selling them in  the domestic US market.… Read the rest