Overview
Headquarters
Warszawa, Capital City
Category
Economic consultant
Frontera Emerging Markets is a securities-placement firm with its head office in Warsaw, Poland. It offers access to securities traded in energy-rich frontier markets of Caucasus such as Azerbaijan and the Middle East such as Iran through partnerships with local broker-dealers. In April 2018 it started to offer access to Azeri high-yield debt issuances of sovereign bonds and corporate bonds listed in Baku, Azerbaijan; to clients. == History == Frontera Emerging Markets Sp. z o.o. was incorporated on 27 October 2016 in Warsaw, Poland. In November 2016 it has been granted institutional trading licenses by the Securities and Exchange Organisation of Iran. Both of its Founding Partners have been granted individual trading licenses as well and the Company began its operations starting from Iran. In November 2017 the Company partnered the leading broker-dealer in Baku, Azerbaijan tapping the energy-rich monopoly of the Caspian-Sea basin. After testing the market through initial portfolio investment and collecting the first coupon payment on 17 April 2018, the Company is open for business, taking on the clients. == Product == Frontera Emerging Markets is invested in several issuances of Azerbaijani bonds which amounts to a product with minimum annual 7.31% yield for portfolio (Internal rate of return-IRR/bond-equivalent return) virtually secured on monopolistic Caspian-Sea basin production of both oil&gas. Since the local market is 99% over-the-counter (OTC) lacking historical data and live feed, Frontera's main edge is asymmetry-of-information arbitrage. The Company co-invests together with clients and does not directly charge fees per originated client. It leads to a licensed broker-dealer to create, service and report on client's fixed-income portfolio.
