Diversify your sources of capital through debt offerings
Despite the trend toward diversification in many areas of the utility industry, most utility executives have yet to realize that many of the benefits derived from diversifying equity ownership can also be gained through a similar approach to their debt securities. Although institutional investors have long been regarded as the exclusive market for utility debt securities, individuals are an increasingly important component of this market. The factors that motivate individuals to purchase utility debt securities are the same as those that influence purchases of utility stocks: safety and dependable income. The benefits of retail ownership of utility debt securities do not, however, accrue exclusively to the investor. Utility companies that actively market debt offerings to individual investors also can expect to enjoy a number of tangible benefits. Nowhere are these benefits more obvious than in the area of tax-exempt utility securities.
- OSTI ID:
- 5628453
- Journal Information:
- Public Utilities Fortnightly; (United States), Vol. 131:16; ISSN 0033-3808
- Country of Publication:
- United States
- Language:
- English
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