In the prevailing low interest environment in German so called Mittelstandsanleihen are being increasingly offered. Those are bonds my small/mid-tier companies, often with a well recognized name and good reputation for a narrow industry niche.
The bond volume is usually max. 60 million EUR with a coupon of 6%-8% p.a. In fact all the bonds I could have purchased since September 2012 were Mittelstandsanleihen.
I strongly discourage anyone to invest into those bonds, chances are high that at least some of the money will go for good.
The companies usually lack equity capitalization and due to the new „Gesetz zur weiteren Erleichterung der Sanierung von Unternehmen“ (ESUG) a debt to equity swap and a higher haircut for bondholders is easier for companies to enforce. Management now has 3 months time for putting a plan together, they can also group stakeholders into different pools. The plan is accepted if the majority of pools accept it. Accordingly management has a strong incentive to balance the groups in a way that they split the votes of people that are likely to oppose the plan (such as bondholders).
For German readers i recommend this very interesting article on WiWo.
However in my opinion the prime of Mittelstandsanleihen has passed, they are under a lot of scrutiny by the media, especially by financial press. A quick internet search will find loads of bad publicity.
I receive a daily newsletter Finance Today by German paper Handelsblatt. For one whole week the newsletter featured a flashy ad for such a Mittelstandsanleihe by Gamigo.
That made me wondering if the will also feature the negative articles about the SME bonds they published online/in print in their newsletter.
Well they did (good!):
Showing posts with label Media. Show all posts
Showing posts with label Media. Show all posts
Wednesday, June 19, 2013
Monday, May 13, 2013
Deutsche Wirtschafts Nachrichten (DWN) or: To stupid to translate a graphic
Today a facebook "friend" of mine posted the following article:
http://deutsche-wirtschafts-nachrichten.de/2013/05/13/die-stunde-der-krisen-profiteure-deutsche-bank-erwartet-bank-sterben-in-europa/
The content is about the consolidation process in the banking industry, but thats not the point.
They introduced a graphic from an source called "EBF" (i.e. European Banking Federation?).
Problem is this graphic is in English.
How they translate the graphic (left of bars to grey shaded area ):
Deposits - Kredite (i.e. loans)
Loans - Eigenkapital (i.e. equity)
The rest is correct. Out of the 18 comments this piece has so far, non is going beyond the usual propagandistic comments from braindeads.
To be clear: Those translation errors do not contradict the "analysis".
Yet it is telling a story about the quality of those "news" coming from such websites and alike.
This "news agency" is well known for alarmistic reports usually about the Euro or the banking system, etc. It tries to camouflage its tendentious content with a professional interface and name. Deutsche Wirtschafts Nachrichten translates into something like German Business News.
Now the media company behind this is Blogform Social Media. I don't think the authors/editors for this page are motived by idealogical reason. They probably try to serve the increasingly popular niche of gold/silver fan boys, banking system critics, conspiracy theorists and the like.
A big fuss about a little mistake- probably yes. However I'm worried about the increasing number of those "news" websites. People do not seem able to fully understand that such sources are not very reliable nor neutral (not even trying to be that is).
Our (German) business papers are already weak from a quality point in my opinion, so there is no need to further drag it down. There are blogs that cover more interesting/detailed research than newspapers.
But in the end it is: You get what you payed for I guess.
http://deutsche-wirtschafts-nachrichten.de/2013/05/13/die-stunde-der-krisen-profiteure-deutsche-bank-erwartet-bank-sterben-in-europa/
The content is about the consolidation process in the banking industry, but thats not the point.
They introduced a graphic from an source called "EBF" (i.e. European Banking Federation?).
Problem is this graphic is in English.
How they translate the graphic (left of bars to grey shaded area ):
Deposits - Kredite (i.e. loans)
Loans - Eigenkapital (i.e. equity)
The rest is correct. Out of the 18 comments this piece has so far, non is going beyond the usual propagandistic comments from braindeads.
To be clear: Those translation errors do not contradict the "analysis".
Yet it is telling a story about the quality of those "news" coming from such websites and alike.
This "news agency" is well known for alarmistic reports usually about the Euro or the banking system, etc. It tries to camouflage its tendentious content with a professional interface and name. Deutsche Wirtschafts Nachrichten translates into something like German Business News.
Now the media company behind this is Blogform Social Media. I don't think the authors/editors for this page are motived by idealogical reason. They probably try to serve the increasingly popular niche of gold/silver fan boys, banking system critics, conspiracy theorists and the like.
A big fuss about a little mistake- probably yes. However I'm worried about the increasing number of those "news" websites. People do not seem able to fully understand that such sources are not very reliable nor neutral (not even trying to be that is).
Our (German) business papers are already weak from a quality point in my opinion, so there is no need to further drag it down. There are blogs that cover more interesting/detailed research than newspapers.
But in the end it is: You get what you payed for I guess.
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