Even though bond investment is considered to be one of the safest investments, it involves risks linked to the issuer of these bonds. the main issuer risks are : 

  • default risk
  • liquidity risk
  • price risk
  • interest rate risk
  • foreign exchange risk

The bond investment proposed by Béton Capital can be considered low risk, as neither its yield nor its redemption value are dependent on market fluctuations and its value is fully covered by the real estate assets and cash held by Béton Capital.

synthetic risk indicator

Default risk. 

This is the risk that the issuer will not be able to repay the bonds issued. This risk naturally depends on the quality of the issuer. In the case of Béton Capital, the real estate assets held by Béton Capital as well as its liquid assets are at all times greater than the bond debts and any bank debts. The risk of default can therefore be considered negligible. 

Liquidity risk

This is the risk an investor faces when he wishes to sell his bond if he cannot find a counterparty to buy it. In the case of Béton Capital, there is no need to find a counterparty to buy it because Béton Capital is contractually committed to buying the bonds issued within a maximum period of 12 months.

Price risk

This is the risk to which investors are exposed when they hold a bond whose price fluctuates, for example in the case of a bond quoted on the financial markets. He may not be able to sell it at a value greater than or equal to his investment. In the case of Béton Capital, the sale price is known at the outset. As the final buyer is Béton Capital, we can enter into a contractual commitment to protect investors from any price fluctuations.  

Interest rate risk

Changes in interest rates on other investments can affect the relative attractiveness of a bond and cause its price to rise or fall. In the case of Béton Capital, although the yield is considered attractive, as the price is contractually guaranteed, if rates were to make it relatively less attractive, the price would not be affected. 

Foreign exchange risk

When investing in one currency, the investor is exposed to the risk that the exchange rate for another currency will move unfavourably and offset performance. This is why the bond investments offered by Béton Capital can be denominated in Swiss francs or euros, so that whatever your projects, you do not have to bear the exchange rate risk. 

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