By: Polux Díaz
Director of the Program Master’s Degree in Finance, ITAM
When a Company wishes to grow and does not have the necessary means to make it happen, it should resort to the capital markets. You can be obtain funds there in two ways: with debt by obtaining a bank credit or by issuing some kind of bond in the market and the second is by issuing stock. A severe problem found when using this last method is the few means investors may have to acquire shares of the Company in the Mexican market, but this does not mean that the Company is in bad conditions or that its shares are not attractive, it is simply due to the fact that the number of investors that can acquire shares in a market like the Mexican is low, so they may not be willing to acquire more shares either because their funds are invested or simply because they may think is not attractive enough to acquire them.
CKDs: A Novel and Promising Source of Financing
By: Cuauhtémoc Altamirano, Federico Hernández and Hugo García
KPMG Cárdenas Dosal, S.C.
Capital Development Securities, (CKDs as are known in Mexico) are a type of trust security designed to finance long-term public works, infrastructure, realty and technological projects. Such is their potential that it is hoped they will help reactivate the Mexican economy and enable pension funds to offer savers more for their money.
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