Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 2: Fixed- income markets: Issuance, Trading and Funding (Public…
Chapter 2: Fixed- income markets: Issuance, Trading and Funding
-
Public offerings
-
- Auctions (more details in the lecture slides)
-
-
Non- competitive bids: specify only the amount (i.e: retails company, small company)
-
-
-
-
6 steps: Determining funding needs => Selecting the underwriter => Structuring the transaction => Pricing the bond issue => Issuing the bonds (underwriter purchase entire bond issue and start to resell bond) => Delivering the bonds (to the investors)
Underwriter's revenue: difference between the purchase price of the new issuance and the reselling price to the investors or broker- dealers
-
-
-
-
-
-
-
Sovereign bonds
In the US
- Treasury notes (maturity between 1- 10 years)
- Treasury bonds (maturity longer than 10 years)
- Treasury bills (one year or shorter), mostly are zero coupon bonds
-
Non- sovereign government, quasi- government, and supranational bonds