I was reading the latest SaskWorks Venture fund annual statement, and under their statement of investment portfolio there are quite a few smaller companies issued Subordinated loans at 12, 15, and even one at 18% Coupon rate.
So my question; Is the stated coupon rate an annualized rate of return like an interest rate, or is it the whole cost of the debt at the maturity date?
18% annually seems ridiculously high.
So my question; Is the stated coupon rate an annualized rate of return like an interest rate, or is it the whole cost of the debt at the maturity date?
18% annually seems ridiculously high.