ShippingWatch

Growing interest for bonds in shipping

Shipping should look at the strength of the bond markets and investors' appetite for even low quality credit as manna from heaven, says financial consultant and shipbroker, Basil Karatzas.

Even though the bond market has historically not been the traditional source of financing for shipping companies, it is now starting to increasingly look like the bond market will be an attractive venue for the industry in the time to come, for established companies as well as new players.

"Given the state of traditional lenders in shipping, the bond market likely will be an active venue for shipowners to access capital. As long as interest rates remain low and demand by investors for yield products in the 5-10 percent remains strong, at the trade-off of lower credit or collateral, there will be plenty of activity from established shipowners and also for relatively newcomers in their ongoing pursuit of alternative financing," says Basil Karatzas, of finance and shipbrokerage firm Karatzas Marine Advisors & Co in New York, in a featured article on ShippingWatch.

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