The Capital Markets News section is powered by the Bucharest Stock Exchange
Stock broker TradeVille acquires Romanian, US government bonds to counter inflation
Romanian stock broker TradeVille recently bought state securities issued by the Government of Romania and that of the United States. The purchases were made mostly at a discount, ensuring higher returns than the interest on financing.
TradeVille shareholders decided to buy government securities worth EUR 934,000 and USD 3.1 mln. The company has a market share of 10% in Romania.
"As a general principle, TradeVille does not invest in shares/bonds of listed companies so as to not expose clients to risk indirectly. We prefer to have excess cash so that the company is able to cover extraordinary situations and let clients take on the risk of their own investments, not the risk of the intermediary,” Miriam Andrei, CEO of TradeVille told Ziarul Financiar. “To protect the cash resulting from the company’s profit we bought, at a discount, securities issued by the state with the intention of keeping them until maturity,” she added.
Among the bonds purchased are 1,000 US government securities, in dollars, issued on July 31, 2022, and set to mature on July 31, 2024.
The brokerage company also bought Romanian government bonds worth EUR 500,000 set to mature in April 2033. The purchase price was EUR 338,000 and the yield was 6.32%.