The Use and Benefits of Medium-Term Notes
Founded in 2007, Firminy Capital Sarl offers investors risk-valued securities products through its private securitization fund, the Firminy Equity Fund. Firminy Capital Sarl also manages a number of sub-funds, such as Global Smart City Series 1, which gives investors access to medium-term notes (MTNs). MTNs are defined as debt tools that a company continuously offers to investors via an agent or dealer. Although most MTNS are designed to mature in two and five years, it’s becoming more common for MTNs to be issued at the long end of the maturity curve at 10 to 30 years. MTNs are made available in the same form as other sorts of financial institution, corporate, or government obligations, but delivered via a different mechanism. Instead of being offered on a firm commitment basis, MTNs are made available by agents on a best efforts basis. MTNs provide investors with a number of benefits, including greater flexibility, liquidity, and diversification. With countless types of notes available for purchase, the growing MTN market allows investors to cover portfolio gaps that could go unfilled with traditional bonds.