The National Law Review published an article recently that offered solid information and advice to EB-5 investors who might be considering funding government infrastructure projects through the traditional method of purchasing bonds. The bond approach is permissible, but investors need to carefully consider if it is suitable for them.
Who is the issuer? This includes, but goes beyond, reviewing financial statements. Consultation with a financial advisor who understands U.S. government accounting principles is strongly recommended. What is the bond rated? Again, a financial advisor should be consulted. Bonds returns are based on risk versus reward. The higher the rating (probability the investment will be repaid), the lower the reward. The lower the rating, the greater the reward must be in order to attract investors. AAA is the highest rating; BBB/BAA is the lowest. What is the entity’s history? Consider their repayment track record with past issuances. How much skin does the issuer have in the game? This answer to this question should reveal a lot. What is the term of my investment? One of the attractions of the EB-5 investment visa program is the length of time an investor’s money is tied up. That is typically five years and is sometimes less. Bond investments may be held for 20 years or more.Every investor’s situation is different. If you have the money, the time, and the patience, government bonds may be a consideration.
Our immigration and investment expertise is available to you in Dr. Finkelson’s ground-breaking book that was published in 2014, How to Find Chinese Investors, Agents & Clients for Your EB-5 Projects & Services. A Practical Guide for Regional Centers, Attorneys, Developers and Businessmen. Ordering information is available on our websites: www.Business-Visa-USA.com, www.Business-Visa-USA.cn, www.Business-Visa-USA.hk and www.Business-Visa-USA.ru.
As always, we welcome your input and discussions about immigration on our LinkedIn group: Business and Immigration News & Views https://www.linkedin.com/groups/8140530
– See more at: http://www.datsyn.com/article/5621/2016/03/30/EB-5-Government-Infrastructure-Bonds#sthash.1lj1tjVW.dpuf