Home Guaranty Corp. to issue zero-coupon bonds
State-run Home Guaranty Corp. (HGC) is planning to issue zero coupon bonds to raise P10 billion later this year.
Zero coupon bonds do not pay periodic interest. Instead, you buy the bonds at a deep discount and you receive the face value at maturity. It's another investment alternative to look at.
Another piece of good news. HGC is intent on helping develop a secondary mortgage market in the country. That means new investment instruments like mortgage-backed securities can be introduced, giving more options to investors.
