Can an LLP issue bonds

Debt-related capital market financing

Long-term Leverage Markets pp 123-173 | Cite as

  • Markus Knüfermann
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Summary

Even if credit transactions in common parlance certainly mostly imply bank credit transactions, the term should still be given a broader meaning. Because loan financing in the monetary sense means the procurement of outside capital. The corresponding process can be implemented via two different platforms, (1) via banking markets and (2) via capital markets. This means that capital market financing can in turn be differentiated into that via (1) debt capital using bonds and via (2) equity capital (primarily) using shares. In this book, bond financing is in the foreground because it focuses on debt financing (see Section 1.1). They are of greater importance for the housing and real estate industry, as is also shown below in Chap. 4 should become clear. Sect. 4.1 first reports on current developments on the bond markets, focusing primarily on the influence of monetary policy and the consequences of the low interest rate level. On the other hand, Sect. 4.2 explains the technical building blocks of bonds, their essence, especially the price / return ratio. The extent to which these market developments and the options for structuring bond financing are relevant for companies in the housing and real estate industry is explained in Section 4.3. Sections 4.4 and 4.5 deal with international financial management. In particular, the two chapters aim to provide an understanding of structured finance. Section 4.6 discusses leverage, which is enriched with equity properties, called mezzanine capital. Here, too, an exercise chapter concludes (Section 4.7).

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References to chapter 4

  1. German Bundesbank; For periodical publications and individual analyzes, see the URL: "http://www.bundesbank.de/Navigation/DE/Veroeffnahmungen/veroeffnahmungen.html".
  2. GdW (2010): GdW Information 125, Bearer Notes - An alternative financing instrument for housing associations. Berlin, hectographed manuscript, 20 pages + various attachments.Google Scholar
  3. Gischer, H./Herz, B./Menkhoff, L. (2012): Money, Credit and Banks, 3rd edition. Heidelberg: Springer.CrossRefGoogle Scholar
  4. Spremann, K./Gantenbein (2013): Financial markets, 2nd edition. UTB / UVK / Lucius.Google Scholar
  5. Wöhe, G. et al. (2013): Fundamentals of Corporate Finance, 11th edition. Munich: Vahlen.Google Scholar

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© Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2018

Authors and Affiliations

  1. 1.EBZ Business School University of Applied SciencesBochumGermany