| Videos | Channels | Search |
Formula 1 bonds - the surprising winners
Formula 1 is back for another year and Saxo Bank's Head of Fixed Income looks at which companies related to the sport are attractive for bond investors. He explains there's a fascinating range of returns and investment opportunities connected with the sport.
Renault and Mercedes are two obvious companies to look out for when it comes to Formula 1, according to Simon, but he warns they offer low yields. Instead he explains that Fiat, which sponsors the Ferrari team, is more appealing as its 5-year bond offers a yield of 4.25 percent.
Energy companies also seem to love Formula 1. When it comes to this category of firms, Simon is particularly keen on Petrobras, Petronas and Petroleus de Venezuela - but investors should know the latter comes with a "substantial amount of risk.
And Formula 1 teams wouldn’t be where they are without financials, another group worth looking at according to Simon. He explains financial sponsors like UBS, Allianz and Santander all have bonds issued, and suggests that in order to obtain higher yields, investors should take a look at the hybrid bonds issued, which are a bit more risky than normal bonds, but offers a decent yield.
One that stands out in particular is the new CoCo bond from Santander, which offers 6,5 percent, with a call in 2019.
01:43 minutes
Tags: allianz, bond market, bond yields, bonds, f1, f1 racing, ferrari, fiat, formula 1, formula 1 bonds, formula 1 investment, formula 1 sponsorships, formula one, formula one ferrari, formula one fiat, formula one investing, formula one investment, mercedes, mercedes bonds, patroleus, petrobas, petroleos de venezuela, petronas, racing, renault, renault bonds, santader coco bonds, santander, santander bonds, saxo, saxo bank, saxo tv, tradingfloor.com, ubs, video, yields