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fixed income - issuance, trading, funding - Coggle Diagram

- - - - money market <1year
      - capital market >1 year
    - - floating-rate
      - fixed
    - - investment grade - Baa3 above Moody - BBB- above S&P
      - non-investment grade - high yield
    - - domestic bond
      - foreign bond
      - eurobond
      - global bond
    - - corporate
      - securitized
      - government and related
    - - developmed market
      - emerging - higher yield than developed
- - - - market
        
        exchange market (场内交易）
        
        OTC - spread between bid and ask price are narrower for liquid issues
        
        electronic trading network - growth
      - settlement
        
        government bond (T+1)
        
        money market - on the day
        
        corporate bond (T+3)
    - - public offering
        
        best effort - commision basis
        
        auction - issue government bond
        
        underwritten - purchase entire and sell to dealer
        
        grey market: 发行前小规模试发行
        
        shelf registration - issue over time when needed (分批发行）
      - private placement - to limited qualified investors
  - - - on-the-run: more activly traded
      - off-the-run: replaced by a more recently auctioned issue
    - - GO (general obligation / tax-backed debt) - almost no credit risk
      - revenue bond - revenue by project - more risk- higher yield
    - - coupon strips - coupon strip from original security
      - principal strip -
    - - ferally related - ginnie mae
      - government sponsored enterprise
        
        fannie mae
        
        freddie mae
- - - - serial bone issue - several maturity dates
      - term maturity structure - mature on same date
    - - 9 months to 100years
      - bank, life insurance largest buyer - customize-shelf-registration
    - - bridge financing - roll over when mature
      - backup liquidity lines - credit enhancement by bank ensure sufficient liquidity
      - short term 0 unsecured - low rate - issue by high credit quality corporate
    - - bilateral load - one bank
      - syndicated load - several bank
  - - - reserve fund - sell excess reserve
      - interbank fund - one day to a year- unsecured
      - negotiable certificate of deposit (CDs) - <1 year pay interest at maturity
    - - with commitment to buy it back at specified price
        
        repurchase price - greater than selling price - account for interest
        
        repo rate low - risk low - (repurchase price - selling price)/selling price
        
        repo margin low - risk low - (market value of bond - selling price)/market value
        
        not regulated
        
        reverse repo - 借钱转利息
    - - saving account - pay interest - very liquid
      - money market mutual fund (ETF) - intermediate between
      - checking account - form of payment
  - - - depend on credit event - not occure receive par value - occur: par value - nominal value of reference asset
      - issue at discount - higher coupon - significant capital gain
      - credit linked notes (CLN)
    - - participate in tretun of underlying asset
        
        floating rate bond - indirect exposure to asset price
    - - will recieve 100% even if call expire
      - zero coupon bond + call option
      - full capital protection - guarantee certificate
    - - incerse floater
        
        C (max coupon rate) - (L conpon leverage * R reference rate
        
        delerage (0-1), leveraged >1