Financing through the use of fixed income securities

Any financing of planned activities of any kind have a number of investment risks, where the key issue is the structure of the invested capital according to the criterion of ownership. The intent of this paper is to emphasize the financing modalities through the issuance of fixed-income securities (primarily bonds and derivative fixed income securities). By applying the effects of the financial leverage, the paper will explain the basic key arguments for and against financing through the issuance and sale of fixed income securities. The aspect considered in this paper is contrary to corporate risk, that is, the risk of investing in securities.The analysis of the mentioned subject will continue through consideration of the need and possibilities of the units of local self-government (LSGUs) in the Republic of Macedonia to borrow on the financial markets, which is an essential part of the paper. The necessity of finding ways forfinancing major investment projects is a major challenge for the local self-government units in the Republic of Macedonia. Although there is a legal framework and several initiatives, so far no municipality in Republic of Macedonia has issued municipality bonds. Through a comparative analysis of the region's experiences, on the example of municipality bonds will be analyzed the opportunities for financing infrastructure projects through the use of fixed income securities.