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Finansiering med företagsobligationer för fastighetsbolag
Mid Sweden University, Faculty of Human Sciences, Department of Social Sciences.
Mid Sweden University, Faculty of Human Sciences, Department of Social Sciences.
2013 (Swedish)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Initially in this essay it is explained how the financial crisis of 2008 has influenced thebanking system and which regulations that are likely to be adopted in the nearest future.It is concluded that it most certainly will be more expensive with bank loans for real estatecompanies and that the banks will probably be restrictive with these kinds of loans.This will assumedly lead to the real estate companies seeking financing directly in the capitalmarket instead – a development that is similar to the current corporate finance situation inUSA.Bonds are regarded suitable financial instruments for real estate companies, thus youtechnically sell parts of future cash flows and will not pay amortization.The market for these kinds of bonds is found to be underdeveloped in Sweden at the moment– in comparison to e.g. the US.But the interest from Swedish real estate companies is immense and some companies haveactually already issued unsecured bonds.E-mail correspondence was set up with two real estate companies and a law firm, which areall active in the Swedish capital market. They all agree on that this is an interesting field,although there will be some challenges ahead.Positive aspects of bonds are that the real estate companies are able to raise large quantities ofcapital with long maturities as long as they compensate the investors with high yields. It isalso a fast and smooth process to issue bonds, although a negative aspect is that there aremany investors - which lessens the flexibility of the loan.When bonds are unsecured the yields go up compared to secured bonds and this means thatthis kind of financing will fit somewhere between equity and bank loans. Positive though isdiversification of the financing risk and that it enables higher loan to value ratios.The market participants want these bonds to be exchange-traded – this will increase liquidityand transparency.A problem with Swedish real estate bonds being issued today is that they lack rating andwould have a hard time getting a decent one. This means that many institutional investors areunable to partake due to investment policies.Many market participants are currently looking into the possibility of issuing secured bonds.Moreover, the risk of using the Stockholm Interbank Offered Rate to determine a floatingcoupon rate is discussed. It is discovered that the real estate companies will pay a substantialpremium in comparison to the risk free government rate in times of economic turmoil – a riskfactor that the real estate companies must be aware of.Lastly, it is concluded that bonds may be a beneficial way to partially finance a Swedish realestate company under certain conditions. The market for these kinds of instruments will mostcertainly grow in the future.

Place, publisher, year, edition, pages
2013. , 44 p.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:miun:diva-22176Local ID: 028OAI: oai:DiVA.org:miun-22176DiVA: diva2:724697
Subject / course
Business Administration FE1
Supervisors
Examiners
Available from: 2014-06-13 Created: 2014-06-13 Last updated: 2014-06-13Bibliographically approved

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Citation style
  • apa
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  • de-DE
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  • nn-NO
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