Invest now
ALTERNATIVE INVESTMENTS: HOW FIO CAPITAL INVESTS
When considering investments, debentures are seen as an alternative to your traditional routes. Read more about how we use debentures and the difference between this type of investment below.
alternative investment
DEBENTURES: A BRIEF OVERVIEW & CHARACTERISTICS
A debenture is a type of debt instrument that is not backed by physical assets or collateral. Instead, it is backed only by the general creditworthiness and reputation of the issuer, which can be a corporation or government entity.
Debentures are used by companies to raise capital and typically come with a fixed interest rate and a specified maturity date.
unsecured
Unlike secured loans or bonds, debentures are not backed by specific assets. If the issuing entity defaults, debenture hol ders have a cl aim on the issuer’s assets, but they are treated as general creditors.
maturity date
Debentures have a set maturity date, at which point the principal amount is repaid to the holders.
interest payments
Debentures usually pay a fixed rate of interest, often referred to as a coupon, at regular intervals until maturity.
CONVERTIBLE VS. NON-CONVERTIBLE
Some debentures can be converted into equity shares of the issuing company (convertible debentures), while others cannot (non-convertible debentures).
download our full debentures vs. EQUITIES guide
Digital Tokens
using a debt instrument in asset-backed tokens
An asset-backed token can be backed by a debenture or other debt instruments. In this scenario, the token represents a claim on the cash flows or val ue associated with the debt instrument.
UNDERSTANDING DIGITAL TOKENS
asset-backed tokens: A BRIEF OVERVIEW & CHARACTERISTICS
Asset-backed tokens are a type of crypto currency or digital token that represents ownership or a cl aim on a real -world asset. Assets can be anything of value, such as real estate, commodities, stocks, or even intellectual property.
The key feature is that the value of the token is directly tied to the underlying asset.
backing assets
The token is linked to a specific asset or a pool of assets. For example, a token might represent a share of a gold reserve or a portion of real estate.
value stability
Because these tokens are backed by tangible assets, they often aim to provide more stability compared to other cryptocurrencies, which might be more volatile.
TRANSPARENCY AND LIQUIDITY
Asset-backed tokens can offer greater transparency and liquidity. Investors can more easily verify the value of the underlying assets and trade tokens on various platforms.
REGULATORY CONSIDERATIONS
Depending on the jurisdiction, asset-backed tokens may be subject to regulatory scrutiny.
They might need to comply with financial regulations and standards to ensure
transparency and investor protection.
download our full ASSET- BACKED TOKENS guide
Investment FAQS
ADDITIONAL RESOURCE: FEE STRUCTURES ON TRADITIONAL INVESTMENTS
When investing through a financial advisor, fund of funds, fund manager, and into underlying asset classes, multiple layers of fees can be involved. This informative document showcases the breakdown of the potential layers of fees you might encounter.
INVEST WITH US TODAY
Articles
Read Our Articles
CHANGE THE WORLD WITH US
FIO HEAD OFFICE
63 Saal Street, Zwavelpoort, Pretoria, 0081
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.