BAKU, Azerbaijan, May 19
By Zeyni Jafarov – Trend:
The underwriting function for financial tools in the Azerbaijani capital market is in great demand, the Azerbaijani MFX Trading investment company told Trend.
According to the company, the increased demand is due to the fact that there has recently been activity among people who want to get a loan by issuing bonds.
"Raising funds in this way has a number of advantages over the standard type of lending. Thus, underwriting does not require any collateral or surety from third parties," said the company.
As reported, another distinguishing feature of underwriting in the local capital market is that the issuer can put bonds for trading for several parties, which reduces the risk that lenders will withdraw funds simultaneously.
“The Azerbaijani capital market is distinguished by its small range of financial trading instruments. However, representatives of the Baku Stock Exchange are holding meetings with employees of the Istanbul (Borsa Istanbul) and Korean (Korea) stock exchanges to eliminate these shortcomings,” the company noted.
The number of underwriting applications continues to grow, which can be considered a positive factor, given the realities of the pandemic period.
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