Safe investments

When speaking about making safe investments, most of us will think about deposits. Of course, many people use them, but their interest rates are rather low, especially when we start with a relatively limited amount of money. Investing in the stock market is an alternative to that, but, in turn, it has very little to do with the lack of risk.

Corporate bonds may become an alternative to unprofitable deposits and stock exchange, which may be a bit too risky.

Investing in real estate from a securitization fund

Combining your own securitization fund together with other funds allows you to multiply your capital in a safe and secure way. Zenith Capital Group is distinguished by several years of experience, which has resulted in the possibility of buying real estate from securitization funds even 60-70% cheaper than their market value. Your own fund makes it easier to negotiate lower prices so that you can then sell the property for 70-80% of its market price. It is a profit for the investor and an attractive deal for the buyer. Hence the certainty that the property will quickly find a buyer.

Savings account

It is a safe investment for beginners. Saving on a savings account is easy and does not require any professional knowledge or expertise. Opening an account very often boils down to filling in the application via the Internet.

A great advantage of this type of investment is the fact that we can pay out the capital at any time without losing the interest. However, it should be remembered that savings account offers the lowest interest rate, which results in the lowest profit.

Bank deposit

Bank deposit is one of the safest forms of investment and guarantees slightly higher interest rates than savings account. The longer the deposit term, the higher the potential profit. The downside of this method of investment is the need to freeze funds for a certain period of time.

Investment funds

Investment funds help to multiply capital by investing resources in real investments. In practice, this means that the investor entrusts his money to specialists responsible for financing a given investment – a project, a company, etc. They manage the available funds in order to generate a profit, which is then shared among investors.

Investment in the investment funds is good for beginners because they do not require professional knowledge or experience. However, they do not guarantee a return on investment, as the profit depends on the stock exchange quotations. In addition, they may involve certain fees, e.g. for entry and exit or capital management.

Bonds in private placements

Bonds are securities issued by the State Treasury, local governments or companies. They determine the amount of the issuer’s debt to the bondholder. Investors “lend” their resources to the entities by buying their bonds. In return, issuers undertake to redeem their bonds from them within a specified time and for a predetermined amount.

Bonds in private placements give a much higher return than deposits. We may find many different bonds on the market, which means that we have many opportunities to earn money. Care must be taken when making a selection. Some companies issue high-interest-bearing bonds that are not covered by the company’s stable financial situation. Such investment will not guarantee safe and reliable return.

Safe investment – what’s the best choice to make an investment?

Many of us are trying to save money for a peaceful future. You should be aware that it is not worthwhile to keep it at home or in a bank account. It is much better to invest savings so that they bring reliable and risk-free profit.
What is the best way to invest? The investment market offers novice and experienced investors plenty of investment opportunities. In order to make a good choice, it is worth organizing a small investment training. You only need to get acquainted with the different ways of investing and assess which of them will be the most sensible. Thanks to this we will be able to effectively multiply our capital.

Many of us are trying to save money for a peaceful future. You should be aware that it is not worthwhile to keep it at home or in a bank account. It is much better to invest savings so that they bring reliable and risk-free profit.

What is the best way to invest? The investment market offers novice and experienced investors plenty of investment opportunities. In order to make a good choice, it is worth organizing a small investment training. You only need to get acquainted with the different ways of investing and assess which of them will be the most sensible. Thanks to this we will be able to effectively multiply our capital.

Ways of investing financial surpluses

Corporate bonds

The issue of bonds allows the company to raise money from investors for development and investment. When buying securities, buyers grant an interest-bearing loan to the company, which is repaid on a specified date. The bonds are purchased under strictly defined conditions and the issuer guarantees the repayment of the loan and profit disbursement to the investor.

Investment funds

The purpose of investment funds is to raise capital from fund participants and then invest it in a specific investment. The fund’s specialists, i.e. the fund’s representatives, are responsible for managing the funds. They watch over the money invested and give investors a guarantee that their money is working effectively for them. Upon completion of the investment, the profit earned is divided between investors and the fund manager.

Placing financial surpluses in investment funds is recommended to all beginners who do not have much knowledge or experience yet. It is worth knowing that funds are not a completely safe investment, because the profit depends on the stock market quotations.

Exchange market

To invest in the stock market, you only need a brokerage account, which could be quickly set up online. This method of investment is based on following the quotations, observing the market situation and on a skillful analysis of facts.

Investing on the stock exchange can bring both huge profits and significant losses. It is a form intended primarily for experienced financial market participants. Without great financial knowledge, the investments on the stock exchange will have little chance of success. In addition, it is worth realizing that stock exchange investments are associated with a very high risk. Oftentimes one statement uttered by a politician decides about the decrease or increase in quotations, as a result of which in a few seconds you can lose your life savings or gain a fortune.

The most important thing: know what you are saving for

Without a clear goal, there is no need to save money, because having money does not give anything. The objective should be clearly formulated and recorded in a visible place. Only then it will provide you with motivation and help you resist the daily temptation to spend money.

Methods of saving that anyone can apply

Divide your bank account

Decide how much of your earnings will be spent on daily expenses, entertainment, savings and other purposes. This will allow you to better control your finances. To do this, open several subaccounts to your bank account. Many banks offer this possibility free of charge. You can use the division proposed by T. Harv Eker or create your own:

    • account for current expenses – what is necessary for life: food, clothes, medicines, etc.
    • account for mandatory expenses – such as rent, fuel, Internet or telephone. These are usually the same amounts of money, so it’s best if you set up standing orders. Try to keep compulsory expenditure at 30% of your earnings. If it does not seem possible at the moment, consider what you can do to reduce this type of expenditure.
    • account for entertainment – cinema, theatre, trips, parties, meetings with friends, books. Don’t spend this money on savings – otherwise you’ll feel that saving takes away all joy from your life.
    • short-term savings account – money spent on holidays, a new car and other larger expenses, such as good leather shoes. Those are also means of covering the costs of unfortunate events, e.g. bicycle theft.
    • a long-term savings account – is a sub-account from which you are not allowed to withdraw money. These funds are best spent on investments in order to be able to safely multiply their capital.
Save on food

The first step is to plan your shopping. Most of our shopping choices consists of unplanned purchases. Therefore, if you want to stop spending money unnecessarily on food, always go to a shop with a shopping list. Create a weekly meal plan every Sunday. Write down the ingredients for breakfast, lunch and dinner. You need 2 or 3 lunch ideas that could be cooked for 2 days – this will additionally help you save time. Do not throw away food.

Analyze your expenses

Develop a habit of analyzing bills from food purchases, refueling and others. This way you can avoid being subject to a financial fraud and you will be able to see which expenses are unnecessary. You will be surprised how much you can save this way. If you find it difficult to determine whether something is expensive, convert the price into an hourly rate. Is writing a report for an hour worth the hamburger?

Decide what you want to save: time or money

Surely you are very often faced with the dilemma of what to do: pay more and save a lot of time or spend less, but wait longer for the effect? This is best illustrated by traveling. You can get from Poland to Italy by bus or plane. The bus costs little, but the journey takes a long time, and the plane will take you to your destination in a few hours, but it costs more. Choose what you prefer to save: time or money. Or maybe you barter your skills – “I’ll install the door for you and you’ll cut grass in my garden” – and you won’t spend anything?

Focus on minimalism

You certainly have items at home that you don’t use. If there are some things that you really don’t need, sell them. The money obtained will be used for long-term or short-term savings.

What can you afford?

This is a question that every beginner investor should and must answer. The fact that you need a full wallet to start investing is definitely a myth. However, you must remember that the potential profits will be proportional to the capital you decide to invest. Therefore, it is obvious that the higher the starting amount, the higher the profit in the future.

You don’t have a big amount of money to invest? Don’t be discouraged! Even small amounts of money that you will scrupulously save and continue to invest sensibly will bring some kind of profit. The most important thing is commitment and perseverance. The rest will come with time.

Intermediary – do you really need one?

Many people who are at the beginning of their adventure with the investment market decide to use an intermediary who helps them to invest and, consequently, to earn money as well. Are you sure you need one? Not necessarily. Each intermediary charges additional fees, and their services are likely to make you less knowledgeable than if you were investing on your own – convenience costs.

Pay attention to costs

It is obvious that when choosing a given product, the first thing we pay attention to is the potential profit that can be obtained thanks to it. However, this is not the only parameter we should pay attention to. It is also worth knowing the costs. You always have to compare the profits with the costs and only after this analysis you can make a purchase decision. Otherwise you may be exposed to considerable losses.

What to invest in without experience?

You have no experience but you want to start investing? You don’t necessarily want to use services of intermediaries? No problem. There are two products that are worth investing in for beginners. These are treasury and corporate bonds with collateral. The former give a small certain profit, while the latter, generate more money although they require more caution. In case of corporate bonds, you should always choose those that have collateral. Remember that before making an investment, you should check whether it is an appropriate collateral.

I guess everyone is wondering how they could invest their money so that they do not lose it, but instead, generate as much profit as possible. Is it worth buying foreign currencies? What is an alternative to bank deposits? Is investing in gold profitable? These and many other questions may come to our minds. Today we will try to get a little closer to what to invest in so as not to lose, but to gain.

Investment fund

An investment fund is nothing more than a special entity to which we can entrust our financial surpluses. Once we have done so, all the collected money is invested based on the investment fund’s information and experience gained so far. Persons working in investment funds have a wide knowledge, which in turn allows for a correct assessment of the risk of a given investment.

An investment fund is an entity that allows you to generate profits even if you are a beginner. It is not us, but the fund’s employees who make decisions related to investing. It should be remembered, however, that the use of this type of services will involve the payment of additional commission.

Investing in bonds

Bonds are nothing more than securities, which can be purchased for a short, medium or long term. It is a kind of loan for a given entrepreneur who, as a token of gratitude, will systematically pay us a specific interest for it. The issuer undertakes to redeem the securities purchased from us within a specified period of time.
When investing in bonds, we will be able to opt for treasury bonds, which are extremely safe, but do not generate great profits, and for corporate bonds, which carry a slightly higher risk, while at the same time being able to generate much higher profits. Corporate bonds are divided into those with or without collateral. In case of financial problems of the company, corporate bonds with collateral will help us to recover our receivables.

Investing in real estate

Real estate is an extremely attractive method of multiplying financial surpluses. They are considered to be extremely attractive, and this in turn is associated with low investment risk that they carry. The purchased real estate can be resold, however, it will be much more advantageous to rent it. The only drawback of this investment is that it requires a lot of capital. However, if you have the willingness and money, you do not have anything to think about. The real estate market is a profitable and, above all, a safe investment.

Everyone who wants to start investing should know a few basic concepts related to the investment market. Here are some definitions you may need to know.

Interest rate on bonds

The interest rate on the bonds is nothing more than the amount of interest that will be paid to us. Depending on the offer we choose, interest can be paid every 3 months, half a year or every year. It is also worth mentioning here that we can opt for bonds with a variable or fixed interest rate.


If you are just a beginner investor, it is worth taking an interest in products that are more likely to give you a profit. There is a group of bonds with collateral. These include treasury bonds and part of corporate bonds. Before buying them, however, it is worth checking the company’s positions in recent years and the type of collateral.


Covenants constitute a kind of collateral for bonds. They are special provisions protecting buyers of bonds. They should be observed because if they are violated, the issuer will suffer adequate consequences in various forms.

Bond profitability

Bond profitability is a rate of return on capital that we have invested in them. On the primary market it is very simple to calculate. However, the secondary Catalyst market requires a slightly greater involvement in this process.

Redemption date and interest

The redemption date is nothing different than the date when the issuer is obliged to buy the bonds from their owner. Interest, on the other hand, is paid to us periodically, which is undoubtedly a big plus. However, at the date of determining the right to interest, we must already be the owners of the bonds in question. Usually it’s 6 days before the interest payment date.

Serious investment in the market, which is supposed to generate profits, is connected with possessing specific knowledge. It is worth reading some of the terms so that in the future we do not encounter unpleasant surprises.


When considering what is the best way to invest money, many people will consider bidding properties and receivables. Anyone who is even a little interested in investments has heard about such a solution and that it is very beneficial. Indeed, this is true provided that the property is safe and has a regulated legal status. Unfortunately, there is always some risk associated with this, although it can be surely minimized.

Where to get information about auctions from?

The bailiff must give two weeks’ notice of the upcoming bidding for the property. Such notifications can be found on the website of the National Council of Judicial officers (, but also in local newspapers and websites, and in court and municipal buildings.

What to check before bidding?

What every investor should be interested in is not only the purchase price of the property itself, but also other factors, such as the legal status of the property. You should also go to the bailiff’s office or district court to get an expert’s report, an excerpt from the land register, a copy of the real estate appraisal report and find out who has the right to occupy the apartment or premises at any given time. You should also make sure that the current landlord does not have life estate rights to the property.

Of course, it is also necessary to check out the property itself. This is also allowed by the bailiff, although it is good to call the debt collector and ask for details beforehand.

Only when you have a full picture of the situation you can pay the warranty.

Profit on the purchase of real estate from the bailiff auction

The first bidding always starts at 75% of the value of the property as determined by the valuer. A bidding takes place even if only one buyer takes part in it. If the first auction does not result in a sale, there will be another one, where the price of the starting point will be at about 60% of the value. However, the final price is usually within the range of 80-90% of the value set by the valuer.

NWhat difficulties should you prepare for?

The whole operation does not end at the moment of winning the property bidding. Unless the new purchaser is exempt from mortgages and other claims on the house or apartment, he must, nevertheless, respect the right to of third parties to rent the property and the right of lifetime use.

You also need to be patient, because when you win the bidding, it starts the process of establishing a new owner. Before a court judgment becomes final, the debtor has the right to appeal, which extends this period even further.

If there are tenants in an apartment we have purchased, you will need to provide them with a substitute apartment.

Real estate from securitization funds

Banking law states that credit liabilities secured by real estate may only be sold to securitization institutions. A proprietary securitization fund allows you to buy property at a fraction of the market price so that it enters the market with a price slightly below its real value at the time of sale, which guarantees fast sales with a large profit without risk.

Although both solutions – auctions and securitization funds – are similar (at some point they are linked by the purchase of real estate), investing through a securitization fund has a considerable advantage. The investor can do more with less money.

When is it worth investing in real estate?

Investment in real estate is recommended mainly to investors who value investment security and have significant initial capital. First of all, security is ensured by the growing value of the flats. Therefore, if new investments are planned in a given district, it can be assumed that the real estate in the district will be profitable, regardless of whether the investor decides to sell or rent it. It is enough that a new shopping center, a gym, etc. will be built nearby.

Investments in real estate also require extensive knowledge and experience in the market. In order to predict whether an investment will multiply capital, many factors have to be taken into account, including demand, location, changes in loan rates, market situation, exchange rates and many others. This type of investment is therefore recommended for more experienced investors.

Acquisition of real estate

When buying an apartment, you should make sure that its legal and technical condition is in accordance with what the owner declares. Pay attention to all details related to the property. You will also need trading skills to negotiate the best price.

Real estate from bailiff auctions

Judicial property transactions are among the most profitable. During the auction you can buy a flat even for 2/3 of its value. It should be remembered, however, that flats from bailiff auctions are properties of uncertain legal status, therefore it is advisable to carefully check the legitimacy of your investment before proceeding with the bidding.

Real estate which are a collateral for bank mortgage claims

Flats from securitization of bank assets come from the dynamically developing market in Poland, which has a very large profit potential. Unfortunately, natural persons can usually participate in similar investments only by purchasing bonds. However, it happens that investors can buy back securitization properties from specialized financial companies.

One of the most reliable investments is the real estate market. Promising prospects are also offered by foreclosed properties. However, it is worth knowing a few basic things about them before you start buying.

Independent of economic situation

The investment market is often a very promising position, but a large part of it depends on the economic situation. And this, in turn, is not always kind to us. Frequently, the products we have invested in, bring much less profit than we originally assumed. This is the main reason why many of us are looking for other ways to multiply their resources. However, the market situation has no impact on foreclosed properties, so it is worth taking a little more interest in them.

Foreclosed real estate and auctions – a lot of possibilities

Foreclosed properties and auctions give us a field day. Thanks to them, we can multiply our resources in several different ways. The best known and most popular is, of course, the purchase of such an apartment and putting it for rent. However, not all of us have such a large amount of cash. If you don’t have that much money, it’s worth taking an interest in buying out corporate bonds of companies that manage real estate. It is worth investing in bonds with collateral.

Look out for legal loopholes and catches

When deciding to buy a foreclosed apartment or one from an auction, it is worth taking into account that people may still live in there and you will have to cover the costs of temporary substitute apartment for previous owners. Sometimes the situation requires eviction, which you will also have to pay for. These expenses must be included in the price of the apartment.

Take a look at the apartment of your choice

Some offers of apartments with debt claims may seem extremely attractive. However, it is advisable to inspect them in person before the purchase to make sure that the proposed price is adequate to the condition of the property. The condition of the building, the staircase and the last date of installation replacement will play an important role here.

Real estate from credit liabilities is not for everybody

According to the regulations, credit liabilities secured by real estate may be sold only to specialized institutions. In order to earn at least indirectly through them, you can decide to buy bonds related to them.

It has been known for a long time that the real estate market is very popular among people. We buy houses and flats not only for ourselves, but also as an investment. Undoubtedly, this is a safe way to invest your financial resources.

Real estate – invest safely

Growing interest in the real estate market is not caused only by the security it provides us with. This is also because banks have been offering us loans at a relatively low interest rate for some time now, which simply pays off.

In addition, the once popular bank deposits, unfortunately, do not allow us to generate high profits and in the case of a sudden withdrawal of money, they even expose us to losses or returning back to square one.
Investing capital in the housing market has almost always been profitable, which is why it is perceived by everyone as very safe and profitable.

Is real estate market only for the rich?

Year by year we can see a growing interest in exclusive premises. People are deciding to buy houses and flats of a higher standard, so the real estate market is becoming more and more open to investors with abundant wallets. This is undoubtedly a very good way to generate profits not only for us, but also for people from abroad, who are constantly coming here.

Invest with less capital

The real estate market almost always requires investing large amounts of money, even if you decide not to buy a luxurious apartment. But what if we don’t actually have such sums, but we would like to invest? In this case, the only solution that exists is to buy real estate from foreclosures and auctions. If we manage to reach the sources that will allow us to do so, we will buy the property even for a fraction of its market value. Undoubtedly, this is a tempting option, which is worthy of interest at least to some extent.

Investment funds

Investment funds are a group of people who offer us the management of our capital and promise quite high profits. Sounds great, right? However, there is one disadvantage of such an investment. Nobody will do it for free. Such fund, of course, has the appropriate knowledge to manage our capital, thanks to which it will generate higher profits than we could, but it will charge us a fee. So, before deciding to cooperate, it’s worth looking carefully at the rates of return from recent months and the fees we’ll have to pay. We distinguish money market funds.

Bank deposits

Bank deposits are nothing more than accounts that allow us to freeze our money on them. The only thing we have to do is to specify the time for which we will deposit them and their amount. Nowadays we don’t even have to go to a bank – we can set it up on the Internet.

There are fixed and variable interest rates in deposits, the former is better suited for a short freezing period and the latter for a slightly longer one.

What should you do? It will certainly make sense to divide your capital into several different investments. Why? If it is necessary to withdraw money suddenly, only part of the interest will be lost. In case of one account, unfortunately, it would be the whole amount.

Bank deposits are a safe investment, but they do not bring outstanding profits, because their interest rates are usually relatively low.


If we want to earn some money, but we are afraid of the risk, investing in bonds will be the right option for us. These are products which have a kind of collateral in various forms. Don’t forget, however, to get acquainted with the position of the company and the certainty of their collateral before the investment.

Financial investment is a promising prospect of earnings, which carries a certain risk. It is therefore advisable to watch out for suspicious things and observe the basics of moving around in the financial market. Beginner investors will be particularly vulnerable to losses here, of course, so they should be really careful and think through all their moves.

Speculative bubbles

A speculative bubble is nothing more than an unsustainable rise or fall in asset prices. There are situations in which share prices start to rise significantly, but their market value does not reflect the reality. Speculative bubbles grow mainly due to large capital investors, which are later joined by individual investors. An example of such a phenomenon is undoubtedly bitcoin. In such phenomena, after some time, there is a moment when it turns out that we are dealing with an overvalued investment. People with large capital earn the most when they are joined by a large group of individual investors.

Suspiciously high rates of return

People who are just beginning their adventure with investing are often tempted to buy products with the promised high rate of return. There is nothing wrong with this, but they must remember that the higher the rate of return, the higher the investment risk. If you want to invest safely, you should choose products with slightly lower rates of return.

Additional costs

It is not uncommon for investments to be accompanied by additional costs. Therefore, all handling and management fees should be kept in mind. Only when they are taken into account in the calculation will we get the actual profit that we should receive. Not taking these values into account will lead to erroneous results and generate lower profits than we expected.

Therefore, investing involves certain activities, fees and concepts that need to be known and followed in order to actually make a profit. Beginner investors should thoroughly familiarize themselves with all the rules of the investment market before they start any activity on it.

Entity making the investment

There are 3 types of investments. We will distinguish here state investments, private investments, which are undertaken only by individual investors and private institutions, as well as municipal investments, which are undertaken by local governments.

Duration of the investment

We divide investments into short-term, medium-term and long-term. They will last, accordingly to their term, less than one year, more than one year, but less than five years or more than five years. The period for which we will freeze our resources will depend on the decision we make.

Purpose and nature

Investments can also be divided into their purpose and nature. We will distinguish here the investments increasing our capital, the ones securing it, as well as those that will bring us a stable income.

Object of investment

We also divide investments into tangible, financial and human capital. The first one is tangible in nature, the second one is intangible. An example of a tangible investment will be the purchase of a house, and an intangible investment will be the purchase of foreign currencies, shares or corporate bonds.

Investments are therefore divided into many different types. It’s up to us to decide which one we will choose. However, it is worth considering your choice carefully as it can have significant consequences in the form of losses. Therefore, we should thoroughly familiarize ourselves with the product and the company that offers it, and realistically define our capabilities. If we follow the prudence principle, we should generate some profits over time. There are so many products to choose from that everyone will surely find the one that fully corresponds not only to the prospect of profit, but also to the degree of investment risk. It is therefore worth considering multiplying your financial surpluses.


When we have some free financial resources, we always wonder what to invest in to gain the highest and, at the same time, a safe profit. Both criteria are rarely met at the same time. When investing, it all goes down to one rule: low risk – low return, high risk – high return. However, there is a way to reduce the risk and ensure a relatively high rate of return at the same time. These are corporate bonds.

This is why more and more people are investing their funds in corporate bonds. Investors see them as a huge potential and an opportunity to effectively multiply the capital.

What are corporate bonds?

Corporate bonds are debt securities which have been issued by a certain company and establish its indebtedness towards the bondholder.

Depending on the original redemption date, corporate bonds are divided into:

  • short-term,
  • medium-term,
  • long-term.

Is it worth investing in corporate bonds and why?

1. Risk reduction

Corporate bonds are issued by various companies. Thanks to this, the investor has a wide range of financial instruments. It is very easy to find those that belong to stable companies, which increases the security of investments.

However, when choosing a bond, it is worth paying attention to whether the high interest rate of the bond is reflected by a stable financial situation. If this is not the case, we should not invest in the bonds of such an issuer. If we bear this in mind, we will avoid the trap of seemingly certain profit.

2. High rate of return

In terms of return on investment, corporate bonds allow us to gain much more than popular deposits. The better we are able to assess the credibility of the company, the more risk reduction and a higher return on investment we can expect. To make an accurate assessment, we need some knowledge about investments in bonds and experience in multiplying capital.

3. Simple rules

Starting an investment is only connected to opening a brokerage account. Purchased securities are visible on it, so you can easily and quickly check your account balance. Interest on investments is received on dates specified by the issuer on the same account.

4. Possibility of investing financial surpluses

Buying bonds does not mean that funds are frozen – on the contrary, you can usually freely sell and buy more corporate bonds, and the multiplied funds can be invested in other financial instruments.

What do you need to have in order to invest in corporate bonds?

If we care about a high rate of return and limited risk, we should invest in broadening our knowledge about investing and the market. Only then will we be able to accurately assess the credibility of companies offering corporate bonds and make the right investment choices.

What is the investment in private placements bonds?

Private placement bonds are debt securities which determine the value of the issuer’s indebtedness to the investor. They are issued in order to raise capital, which a given company will use for investments, e.g. real estate trade.

This type of bond benefits both parties of the transaction. The company raises the necessary funds and investors invest their free capital. Private placement bonds guarantee a fixed interest rate and a regularly paid coupon.

Process of issue and investment in bonds in private placements

According to the Act on bonds, after issuing bonds, the company can inform a maximum of 149 people about this fact. Notifications must be inscribed and information on the issue of bonds may not be made public. Recipients of notifications are required to decide whether or not they want to invest in the bonds of a company.
Potential investors receive a Bond Purchase Proposal, which contains detailed information about the offer, including the purpose and date of issuing a bond, price, interest rate, offer date and bondholders’ rights. In addition, they receive the company’s financial statements if they have not already been made public.

What is the difference between private and public bonds?

Experts most often point to one difference between private and public bonds: the former have a much shorter time between issuance and placement. Private companies do not have to present an information memorandum or prospectus, which significantly shortens the whole process. As a result, the purchase of bonds in private placements is much quicker and easier.

Moreover, bonds in private issues are more elite, as only 149 investors selected by the company can invest.

How to start investing in private placement bonds?

At the beginning, care should be taken to be among the 149 people who will receive information about the placement of bonds. In order to do so, it is best to send your details to the issuer so that he can contact the appropriate persons when the bonds are issued.

When you receive an offer to buy bonds, you should decide whether or not to invest in the company. If the investor decides to make an investment, he must fill in, sign and submit a Bond Acceptance Proposal form in private placements.

The next step is to deposit a certain amount of money into the issuer’s account.

If there are too many investors, they may receive less bonds than they have previously declared or not get them at all. In the second case, the would-be purchasers receive a refund of the amount paid.

At the final stage, the bonds in the form of a document are delivered to their new owners. They will return to the original company, which will buy them from the buyers for a fixed amount within the set deadline. In this way, private placement bonds will allow investors to multiply their invested capital.

Public and private offers

Public offers, as the name suggests, are the offers the data of which is open and accessible to practically all of us. Details can be found in the prospectus, which is valid for one year. In this case, we can purchase products directly from those offering them or through a brokerage house.

What about the private offer? There are some limitations here. First of all, the bond purchase proposal can only be passed on to 149 people and it is addressed to specific entities with known personal data. In this case we can also contact the issuer directly or register with a brokerage house.

Bond funds

Bond funds are nothing more than specialized entities that invest for us. They operate on the principle of collective investment, which allows them to raise high capital. How does it work? We donate our capital and experts invest it in the fund.


Catalyst is nothing more than a secondary market organized by the Warsaw Stock Exchange. In this market we will find products that are extremely safe, but also those that carry a higher risk and at the same time promise greater profits. To take advantage of the Catalyst offer, you will need to open a brokerage account. This, in turn, is connected with the brokerage house’s commission on each and every transaction conducted by us.

Bonds have long been very popular among investors in Poland and abroad. Companies and individuals multiply capital by buying treasury and corporate bonds on the primary or secondary market.

We will explain how the process of purchasing particular types of bonds looks like.

Process of purchase of treasury and corporate bonds

Treasury bonds

These are the bonds that are best purchased in case of medium or long-term investment. Their biggest advantage is the profit guaranteed by the State Treasury, and their disadvantage is low interest rate.

As these are bonds issued by the State Treasury, they can only be purchased through banks. You can buy bonds in their offices, and more often also via the Internet or telephone.

Corporate bonds

Corporate bonds bring much higher profit than Treasury bonds. When choosing to invest in corporate bonds, attention should be paid to the interest rate and credibility of the issuer.

Process of purchasing bonds on the primary and secondary market

Primary market

Bonds on the primary market are characterized by the fact that the ability to buy and sell them is limited in time and the value of bonds is determined by the issuer. They can be purchased through some banks and brokerage houses. In order to purchase the bonds, you have to contact the organizer of the issue during the term of the offer.

There are two types of bond offers on the primary market – private and public.

Bonds in private issues. Information on the placement of bonds is provided to a maximum of 149 interested persons and only they may become investors in a given offer. The bonds are purchased from the issuer itself, and the placement is mediated by consulting and investment firms.

Bonds in public placement. This type of bonds is addressed to more than 149 investors. The offer is made available to the public through the press, the Internet or television. Investment firms are often the intermediaries of issue.

Secondary market

The Polish secondary market for corporate and municipal bonds is called Catalyst and has been listed on the Warsaw Stock Exchange for several years now. It differs from the primary market by the fact that the time of buying and selling bonds is unlimited, and the price of securities shapes the market – the more popular the bonds are, the higher their price.

Treasury bonds

Treasury bonds are nothing more than products that our Government uses for financing. They are considered to be one of the safest and carry little investment risk. Here we will be able to decide on a fixed or variable interest rate and one of the three maturity periods:

  • 2 years,
  • 5 years,
  • 10 years.

The interest rate in this case will depend not only on the situation on the market, but also on the maturity period we will choose. The maturity period itself is nothing more than the duration of a financial instrument.

It is a safe investment, as the redemption of bonds with interest is guaranteed by the Government. Of course, it entails some kind of risk, but it is very low. The situation would be unfavorable for us if the State went bankrupt and, as we know, it does not happen overnight. Treasury bonds are a good investment, but they do not necessarily generate high profits. In this respect, corporate bonds will be a much better choice.

Corporate bonds

Corporate bonds have a more attractive interest rate than treasury bonds, but they also carry a higher investment risk.

Nevertheless, you can search for corporate bonds that will not be as risky. It is best to choose those that have some kind of personal or material collateral. Such choice will allow us to generate satisfactory profits and at the same time significantly reduce the investment risk.

According to the provisions of the law, private placement bonds may only be addressed simultaneously to 149 persons. If this number is exceeded, its status changes. Let’s take a closer look at how bonds work in private placements.

How to purchase bonds in private placements?

In order to acquire bonds in private placements, one needs to take a few necessary steps. These steps are:

  • filling in and sending back the initial declaration of interest,
  • getting acquainted with the acquisition proposal and the decision,
  • providing confirmation of acceptance of the terms and conditions of purchase of bonds.

In this case there are no prospectuses, which significantly simplifies the whole process and shortens the waiting time for its completion. It is therefore slightly more attractive than public bonds.

How to become an addressee?

For some time now, the rules on private placement bonds have been tightened up and, as a result, it has been very difficult to reach them. If we still want to buy bonds in private placements, the best way to become an addressee of such an offer is to directly contact the selected issuer and provide it with your data. You can also ask the brokerage houses for help.

Corporate bonds – what are they?

This type of bonds is issued by companies that want to raise funds from investors for their own investments. In order to achieve that, they begin to issue debt securities, which determine the company’s debt to the bondholder. After a certain period of time, the investor receives the return of his contribution together with the interest due.

Corporate bonds may be short, medium and long-term. Although interest is usually paid on an ongoing basis, it is not possible to pay the initial investment amount before the bond redemption date. Therefore, when choosing this option, it is worth remembering that investing capital in corporate bonds will mean freezing part of the funds for some time.

How much does an investor earn?

The investor’s earnings depend on the type of bonds purchased. The most common are coupon bonds, which have a specific interest rate. Return on investment depends on the amount of this interest rate. The second type of bonds are zero-coupon bonds. If we invest in them, our profit will be determined by the discount on the nominal value of the bonds.

A significant profit can also be achieved by trading bonds on the secondary market. However, this is quite difficult because investors who have bought the bonds on the primary market and profit from them are reluctant to dispose of their securities.

Fixed or variable interest rate? It depends.

Fixed-interest corporate bonds are profitable when we expect interest rates to fall. Those with variable interest rates should be purchased when we observe an increase in interest rates.

If it had to be made clear which of the two types of bond is more advantageous, the answer would be fixed-rate bonds. They make it possible to accurately predict the return on investment and are much less risky.

What corporate bonds will be the best investment?

It is worth investing in those companies that have good prospects for growth on the market. Most often these are, among others, renowned developers and companies operating on the debt market. Companies that operate on both markets are companies buying real estate from banking securitization. Securitization is a favorable phenomenon for investors, as it allows them to buy flats and houses cheaply and to sell them at much higher prices. Investing in a company that operates in this area increases the chance that the investment will be prospective and profitable. In order to increase diversification, corporate bonds can be purchased from different entities. Diversification of the investment portfolio is always a good practice.


Bonds and types thereof

Bonds are debt securities, which state the amount for which the issuer is indebted towards the investor. The latter, when buying bonds, grants credit to the issuer for his investments. The purchase of bonds is profitable for him as he receives regular interest payments on his contribution.

There are two types of bonds with different interest rates: coupon and zero-coupon. Now we will deal with coupon bonds, which are divided into fixed and floating rate bonds.

Fixed rate bonds

Bonds of this type have a predetermined interest rate, which remains fixed until the end of the investment, i.e. until the bond is redeemed by the issuer. The amount of interest that an investor receives on a regular basis in respect of securities is determined from the beginning. This makes it easy to predict how much profit we are able to gain.

Bonds with variable interest rate

The interest rate on such bonds may change each time the interest is paid. Interest may be paid every quarter, every six months or every year, and the exact date is specified in the Bond Purchase Proposal even before the investment commencement.

Changes in bond interest rates usually depend on the interest rates of loans taken out by banks with other banks (WIBOR). If interest is paid quarterly, the basis for calculating the amount of interest is the three-month WIBOR rate.

The WIBOR itself, however, depends on many complex factors, e.g. GDP, interest rates or inflation. As a result, it is very difficult to predict the profit that we are able to achieve by investing in floating rate bonds.

When we think about what to invest in, one of the sensible options might be bonds. However, there are several types of bonds which differ in terms of interest rate, type of collateral or duration. This guide will help beginner investors to organize their knowledge about bonds.

What are bonds?

To put it simply, bonds are securities that determine the amount of the issuer’s debt to the bond holder. They are emitted in series. After the expiry of the payout delay, the issuer buys back its bonds from the investor and passes on to the investor the return on interest together with the amount invested in the purchase.

Types of bonds for different types of issuers

Only some entities are entitled to issue bonds. These are:

  • The State Treasury – there is a wide range of bonds on the treasury bond market. The bonds are characterized by a variety of investment duration and interest rates. Locating capital in such securities guarantees a safe investment, but also a small profit.
  • local government institutions – bonds of these entities are called municipal or communal. They usually offer half yearly or annual interest payments, and their interest rates are usually variable. This type of securities is not very popular on the Polish financial market, although more and more local governments are deciding to issue bonds.
  • companies – these securities are called corporate bonds. This is where investors most often invest their financial surpluses, because they offer the highest potential for profit. It is important to check the credibility of the issuer when buying corporate bonds in order to ensure the security of the investment.

Types of bonds for different types of collateral

The safest investment is the purchase of treasury and municipal bonds. It is unlikely that the State Treasury or local government will go bankrupt and the investor will not receive the funds due. Poland is unlikely to be threatened, but it is not impossible, as evidenced, for example, by the bankruptcy of Greece or Argentina.

Corporate bonds carry a greater risk, as the bankruptcy of a company today is not uncommon. However, you can secure your investment by checking the credibility of the issuer of the bonds by means of financial statements, ongoing projects, etc., as well as by checking the credibility of the issuer of the bonds. Another type of collateral is a guarantee, surety, pledge or mortgage on real estate.

Types of bonds with different interest rate

The two main types of bonds in terms of interest rate are zero-coupon and coupon bonds. The former are issued almost exclusively by the State Treasury. They don’thave any interest, and investors earn on the discount with which the bonds are released.

Coupon bonds shall bear interest, which may be:

  • fixed – it is set at the very beginning of the emission process and remains the same until the completion of the investment. As a result, the investor already knows how much he will earn on his investment at the moment of purchasing the bonds. Interest shall be paid on specified dates.
  • variables – may change every time interest is paid. The amount of interest depends on the interest rate of loans granted by banks to each other (WIBOR). This in turn depends on financial policy, inflation and many other factors. Therefore, the profit on floating rate bonds is very difficult to predict.

Types of bonds with different term

Fixed-interest rate bonds are usually short and medium-term bonds with a term of up to 2 years.

In the case of floating rate bonds, the deadlines are much more flexible. There are, among others, 10-year or perpetual bonds. The latter are not redeemable and their holder receives a lifetime perpetuity, i.e. interest on their investment.

Be aware of your risks

Almost every investment involves some kind of risk. The financial market is extremely complex, which is why it is worth moving around it with caution. There are products on it that can bring significant profits, but if something goes wrong, the losses will be significant as well. Each investment should therefore be carefully thought out and based on analysis and knowledge of the market.

Investment risk is nothing more than the difference between expectations and reality. What exactly does this mean? When investing in an instrument we expect X rate of return, but after some time it turns out that it is Y. The difference between X and Y is our investment risk.

It is obvious that we will not have any influence on what exactly will happen. What will happen depends on many factors, which, unfortunately are usually random. However, an analysis of the market and what is happening in it can help us to choose the better one among the proposed investments.

Treasury and corporate bonds – differences

Treasury bonds are one of the safest methods of allocating financial surpluses. Here we will be able to multiply our resources without incurring virtually any investment risk. Why does it happen? The answer is very simple. When we buy treasury bonds, the State Treasury will become our debtor, and as a result, we will receive a guarantee of their redemption. And this is precisely the reason why this investment is so safe.

What about corporate bonds? Corporate bonds are a very broad topic. There are so many of them that everyone will surely find a product suitable for themselves. They carry some investment risk, but if we can take the risk, you can also choose the one that meets your needs. How is it possible?

Some of them have a redemption guarantee and, in addition, are secured in kind, e.g. in the form of a mortgage. Thanks to this, in case of problems, we will get access to the collateral against other creditors.

Once you have decided to invest in bonds, you will need to make a choice. You will have to decide whether to go into the primary or secondary market. It’s a good idea to get acquainted with both options before making a final decision.

Differences between primary and secondary markets

In order to make the right decision, you should know what the market is and what the process of investing in bonds looks like. The primary market is the market where you buy bonds directly from the issuer, so the whole transaction takes place between the investor and the issuer. The secondary market is the Catalyst market, where you will buy from an investor not from the issuer, so the transaction will only take place between two investors.

Purchase on the primary market

Buying bonds on the primary market is much simpler, faster and, above all, often more profitable than on the secondary market. Why does it happen? When you buy on the primary market, you buy directly from the issuer, which means that you will avoid paying brokerage commission. Therefore, you will buy the bonds at their issue price.

Purchase on the secondary market

Investing in the secondary market will require us to pay commissions at a brokerage house. Their amount is usually proportional to the value of purchased bonds, and ranges from 0.19% to 0.39%. Such investment is a bit more complicated, as it is also connected to taxes. When deciding to buy bonds on the secondary market, unfortunately, we will have to compensate the previous owner for the interest.

Don’t know what to choose? Start from the primary market. Why? First of all, it is much simpler to use. It does not require you to pay the commissions, taxes, and in addition, it is a bit more advantageous. This is due to the fact that securities issued by high performance companies are usually valued higher than their issue prices. It is therefore worthwhile to take an interest in the primary market.

Every investor who intends to purchase bonds should get acquainted with the terms and conditions of the issue. Only then will he be able to reliably assess whether a given offer is beneficial for him and will actually bring him the expected profits in the future. What information can we find in this document?

Interest rate

In order to assess the actual profitability of an investment, we need to know its interest rate. The issue document specifies the interest rate and the type of interest rate. There are two types of interest rates: fixed and variable. There is no doubt that this factor will also have an impact on the amount of potential profits.


Another important issue here is the coupon. This is nothing more than the frequency of interest payments to the investor. They are paid periodically with the following frequency: quarterly, half-yearly or yearly. In the issue you will also find information on the total duration of the securities purchased.

Bond price and minimum purchase

One of the basic parameters that we will find in the conditions of the issue will be the price for bonds and the minimum number of bonds that we can buy. Some entrepreneurs do not allow the purchase of single bonds and impose a certain minimum number of bonds in advance.

Collateral for bonds

Collateral for bonds is one of the most important information for investors who want to reduce their investment risk as much as possible. It is the collateral that will cover the repayment of liabilities if a company becomes insolvent and goes bankrupt. Collateral can take various forms, for example, it can be real estate that belongs to the company.

It is therefore mandatory that you carefully review the issue and all of its terms and conditions before deciding to purchase any securities. Only after a thorough analysis and assessment of the company’s position will we be able to determine whether a given investment will actually bring us profits, how high they will be and at what investment risk.

It has been known for a long time that before buying bonds of a given company it is recommended to analyze its position on the market in a very thorough way and to take a closer look at the finances. Sometimes it happens that a company starts to have problems, and as a result, it is likely that we will not recover our capital or promised interest. What then? How to behave when the issuer goes bankrupt?

Request for payment

Once we have encountered serious problems with the issuer, we may decide to take some steps. The first one will be sending an official request for payment to the issuer, in which we will specify the amount and date of payment that we should receive. If there is no reaction from the company, it is possible to propose a settlement, for example, in the form of instalments. Unfortunately, it sometimes happens that even this does not bring the expected results. Then the only solution for us will be to file a lawsuit to the court. However, this will entail additional costs.

Infringement of the issue conditions

Violation of the terms of the issue, i.e. failure to pay by the issuer, gives us the right to early redeem the bonds. In order for this process to take place, you need to submit a properly constructed letter. This document should include the basis for the redemption and its precise timing.

Moments before the declaration of bankruptcy

It happens anyway that a given company sinks in debt, which in turn bodes well for bankruptcy in the near future. Before this happens, a company has usually been struggling with considerable financial problems for several months now. It is worthwhile to start applying for one’s receivables at this stage. The sooner we do this, the greater the chance of recovering the capital.

The biggest problems start when a company goes bankrupt even before we get our money back. If it has already been officially registered as bankrupt, all that remains is for us to file a claim with the official receiver. Unfortunately, in such moments we are on our own. We should constantly monitor the situation related to the bankruptcy of the company and systematically contact the official receiver.

Every year corporate bonds are becoming more and more popular among both companies and individual investors. Are they safe? How much can we gain from them? Do they really work as a method of multiplying capital?

Flexible financing with benefits

By investing in corporate bonds, you not only multiply your capital, but also have the opportunity to invest it in a promising way. Also, more and more entities decide to issue bonds instead of taking out loans.

Both the issuer and the investor benefit on the purchase of corporate bonds. The Issuer receives funds which it will be able to use for the development of its business, while the investor, as a reward for lending its capital, will receive systematically paid interest and redemption of bonds at the very end. The benefits are therefore on both sides.

Bonds on the Polish market

The bond market in Poland is still relatively young, but it is also very popular among both companies and individual investors. The development of the market is accelerating significantly, and from year to year more and more money is invested in the bond market. However, corporations are the most numerous group of buyers here. Nevertheless, it can be seen that the number of individual investors is constantly growing. What will happen in the future? Will the number of individual investors be higher than the number of engaging corporations? Time will tell. However, it is worth keeping up to date with the situation of the investment market. This is the only way we will be able to invest our financial surpluses reasonably. Otherwise, we may expose ourselves to unnecessary risks and losses.


Redemption date can be also referred to as the maturity date, which is strictly defined in the issue. This is the date that when issuer returns the capital that we entrusted to him. We can decide on short-term, medium-term or long-term bonds. Thus, their redemption date will be one less than a year, from one to five years or over five years. However, what should we do if we want to recover funds before maturity? It depends on the market in which we purchased them. Catalyst allows you to redeem the bonds at any time, while bonds not issued on Catalyst can be transferred to another investor as part of a sale.

Sales on the Catalyst market

The Catalyst market allows for a very simple resale of bonds which we no longer want to be the owner of. What we have to do is to pass the order to the broker, who will start preparing his offer for us. The only thing that happens later is waiting for the buyer of the bonds. Remember, however, that you will have to pay a commission for brokerage services.

Bonds not functioning in exchange trading

Securities that are not traded on the stock exchange can be sold without any problems, but usually we will have to find a buyer for them. It is therefore worth purchasing bonds with collateral, because we will find a buyer for this type of securities much faster.

The whole process must be in the register, so together with the buyer and the contract, you must go to the brokerage house. In this case, tax issues will also have to be regulated. Such securities can also be sold through specialized companies which will involve the payment of a specific commission.

It is possible to sell the bonds before the maturity date specified in the issue, however, all pros and cons should be carefully considered in this case. It may turn out that it will be an unprofitable procedure for us.

Brokerage commissions

Investing on the primary market is connected with the purchase of selected products directly from the issuer. The secondary market requires an intermediary in the form of a brokerage house, which in turn will require the payment of additional commissions. Their amount will depend mainly on the value of the chosen transaction, but also on the rates that will be imposed on us by the brokerage house.


The secondary market will be less favorable than the primary market also in terms of taxes. By investing in this way, they are usually paid by the new buyer of the product. In addition, it is also worth mentioning here that after the purchase, we will be required to pay the compensation to the previous owner. It shall be the equivalent to the amount of interest accrued until the date on which the product was in its account. There are no such fees on the primary market.

Price increases

It is obvious that the safest investment is the purchase of bonds from a solvent and reliable issuer, who will systematically pay us receivables. This is what most investors are looking for. It is also worth noting that bonds of such companies, on the secondary market, often reach much higher prices than issue prices.

A securitization fund is a type of a closed-end investment fund. The fund issues placement certificates, which in turn are used to raise funds for the purchase of receivables. In our country, all activities related to the securitization fund are regulated by a dedicated law.

Standardized and non-standardized funds

There are two types of securitization funds: standardized and non-standardized. The first of them are always established by law and have specific sub-funds. Non-standardized funds, on the other hand, have the possibility but not the obligation to have a separate sub-fund. Participants of these funds may be legal persons and any organizational units without legal personality.

Securitization funds

Securitization funds are undoubtedly an interesting financial instrument, which, however, has certain limitations. These funds may invest their funds mainly in receivables. However, they can buy securities and invest in money market instruments and derivatives. Securitization is becoming more and more popular among investors year on year, which is caused by the fact that this is one of the fastest growing areas of the financial market. It allows the company’s assets to be converted into cash, which leads to better liquidity and supports the process of generating higher profits in the future.

Securitization of assets is undoubtedly an attractive solution, thanks to which it is possible to significantly improve the condition of the enterprise, especially when it has assets that are difficult to dispose of.


Securitization is the issue of securities collateralized by a fixed group of assets. These may include assets that are subject to control by the entity. For example receivables from customers or income that we will receive for renting real estate belonging to the company.

Asset securitization process

Securitization of assets is divided into several stages.

  • establishment of a special purpose company and selection of an issue agent,
  • establishing a securities issue programme and defining all rules for the selection of assets,
  • obtaining approval from one of the special credit rating agencies and concluding a contract with all participants in a pre-established programme.

Thanks to the securitization of assets, the company gets a chance to obtain additional cash by transforming those assets which have relatively low liquidity. This tool will allow to obtain better financial liquidity in a given company, and thus stabilize the company and generate higher profits in the future. The securitization of assets is also used by banks, which provides an opportunity to buy their assets on better terms.