Establishing investment funds can pave the way for an array of new leasing bonds, the use of which is gaining in popularity in the capital market compared with other methods of funding, SENA quoted head of Iran Fara Bourse’s (IFB’s) department of modern financial instruments, Alireza Tavakoli as saying.
Noting that the share of leasing bonds in the IFB surged from 1 percent in 2009 to 17 percent in 2014, Tavakoli said: “The leasing bonds are expected to account for approximately 34 percent of the capital market by the end of the current Iranian year (March 19, 2015).”
Tavakoli further elaborated that the total value of leasing bonds at the IFB, Tehran Stock Exchange and the banking sector reached nearly $7.78 trillion by the end of previous Iranian calendar year (March 20), predicting that the value will exceeds $12 trillion by the end of current year.
The use of corporate bonds to generate the required funds for the industries is increasing compared to other methods of funding, said Tavakoli, suggesting that the investment advisory firms assist the companies in issuing corporate bonds and support them through proper marketing.”
“Launching and managing investment funds in fixed-income securities by investment advisory firms could be a prudent policy to generate funding for the industries via corporate bonds,” he said.