Municipal Bonds as an Investment Opportunity for Life Insurance Companies on Capital Market in Macedonia

Miloshevikj, Bratislav and Mecheski, Stevcho and Srbinoski, Bojan (2012) Municipal Bonds as an Investment Opportunity for Life Insurance Companies on Capital Market in Macedonia. Procedia - Social and Behavioral Sciences, 44. pp. 184-192. ISSN 1877-0428

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Abstract

The capital market in the Republic of Macedonia is characterized as shallow and weak due to the small range of financial instruments for investment. This situation particularly affects the investment opportunities of life insurance companies because on one hand, they cannot achieve the desired diversification of investment portfolio and on the other hand, they are legally bound to the total amount of assets covering technical provisions to be adequately placed. The experiences of some countries in the region and beyond point out municipal bonds as a particularly attractive investment opportunity. This financial instrument would be appropriate for life insurance companies in terms of their investment policy and for managing the risks that occur during the maturity mismatch between assets and liabilities. In the Republic of Macedonia conditions are created for the emergence of municipal bonds, both in terms of legislation and in existence of opportunity in some municipalities to borrow through the issuance of bonds.

Item Type:	Article
Uncontrolled Keywords:	life insurance, capital markets, financial instruments, municipal bonds, diversification
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business Scientific Fields (Frascati) > Social Sciences > Other social sciences
Divisions:	Faculty of Tourism and Hospitality
Depositing User:	Mr Bojan Sekulovski
Date Deposited:	11 Dec 2017 12:39
Last Modified:	15 Feb 2023 00:32
URI:	https://eprints.uklo.edu.mk/id/eprint/1069

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