Analysis, strategic advice, a sense of technological innovation, execution of its clients’ orders, this company, Valcourt, has established itself as a reference in a highly competitive sector of the bond market. View from Mike Conway, its CEO.
The promises of the bond market
The bond market is a segment of the financial market where public entities and companies can borrow cash by creating debt securities called “bonds”. In the vast financial ocean, which is sometimes known to be choppy, unpredictable, and often feared to be a tidal wave, there is a discreet haven. Bonds offer interest, which takes the form of fixed payments until the loan is fully repaid.
This is a rational and secure investment because, in the event of bankruptcy, bondholders are reimbursed before shareholders. In short, the bond is a promise of the future. A promise for the company that raises funds, and a promise for the investor who reduces risk to a minimum.
Personification of services above all!
Unlike so many financial institutions that segment their clients into strict categories, Valcourt has taken a personalized approach. It is a matter of ethics, but also of pragmatism, since the bank, the asset manager or, even more so, the family office like to assert their dynamics and specific needs. This is also the family tradition. Created by Mike Conway’s father in 1987, the company has always advocated independence and a sense of listening, two values proudly brandished today by Mike Conway and his brother who want to be worthy successors.
Faced with the future investor, Valcourt thus strives to understand the sum of the criteria and advise accordingly. “I want a bond portfolio in euros, with maturities of 5 to 10 years and a non-speculative risk profile”. So be it! Valcourt selects the best opportunities, based on these criteria, thus offering a rigorously targeted service. In other words, Valcourt implements a strategy. It is a partner, in the strong sense.
We always manage to find a bond that fits the client’s profile. That’s the beauty of the bond market.
Mike Conway, General Manager of Valcourt
Promoting ethics at all levels
This over-the-counter market, characterized by a limited number of sellers and buyers, requires in-depth expertise to ensure efficient and transparent transactions. It is in this context that Valcourt excels, providing the essential support made of expertise and pedagogy.
It is obvious that the financial dimension is paramount. But Valcourt’s approach also contributes to economic and societal development. By partnering with companies that are pioneers in the impact market (Symbiotics, for example), Valcourt allows its clients to invest in specific projects, such as reducing carbon emissions, green agriculture in India, or financing people without access to capital. This demonstrates that profitability and virtue are not mutually exclusive. Far from it.
However, the bond market is not without its challenges. One thinks, in particular, of the takeover of Credit Suisse by UBS in 2023, when the bonds were confiscated, creating an understandable scandal among investors. Valcourt was able to respond effectively to this crisis by being the first Swiss player to deal in the claims related to this incident, thus demonstrating exceptional responsiveness.
The bond market: complex but essential
The bond market is often less well-known to the general public than the stock or real estate markets. This lack of awareness is explained by the diversity and complexity of the bonds available, compared to the apparent simplicity of ordinary shares. For example, lending money to a company like Nestlé will involve choosing from hundreds of different securities, with varied criteria such as currencies and maturities.
This is where Valcourt stands out. In a competitive and niche market, the company has been able to establish a network of 700 loyal customers, thanks to relationships built up over the years. Valcourt’s expertise in convertible bonds, although today representing less than 20% of its activities, has been the basis on which the company has diversified and adapted to new market opportunities. Today, the field has opened up. The company specializes in new segments, such as recoveries following litigation on listed securities. Enough to come to the aid of investors who, more often than not, were unaware of the very possibility of these compensations.
