In his interview with LS, he has explained that this financial instrument offers a higher level of return than government bonds and debt securities of large companies, given the level of credit risk of SMEs.
“SME bonds can be less liquid and less stable than debt securities of larger companies. Therefore, investing in them may be less desirable for pension funds, which must manage investment risks and ensure long-term stability. Thus, we believe, the strategy of pension assets in general should consider the investor's desire to preserve their capital and receive return over a long period of time,” the speaker explained.
However, Kuanov believes that investing in these securities is associated with increased risks, including default risk, liquidity or changes in the macro environment.
Earlier, the ARDFM has published a draft resolution, which proposes to expand the list of financial instruments allowed to be purchased at the expense of pension savings. In particular, it is planned to add non-government debt securities issued by small and medium-sized businesses to this list.
Photos are from open sources.