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5: Foreign and International Bond Issuance and Management - Coggle Diagram
5: Foreign and International Bond Issuance and Management
Characteristics
Coupon rate
Maturity
Call provision
Tax status
Types of bond
Domestic Bond
Issued by local company in local market. Example: Toyota, Japan issues bond denominated in Japanese Yen in Japanese market.
Foreign bond
Bond issued in foreign country, currency, and borrower. Example: Apple, US issues bond denominated in Japanese Yen in Japan. This could mitigate foreign exchange rate risks,
Eurobond
Bond issued in foreign country and borrower but in denominated currency. Example: Apple, US issues USD bond in Japan.
Issued outside country, not subject to domestic regulation, take form of private placement, sell mainly to non-residents
Global bond
bond that issued to offers investors from multiple countries. These bonds normally denominated in multiple currencies. Issued by large MNC / as sovereign bonds (issued by government representing the country)
Credit rating criteria
Profitability
Earnings quality
EBITDA margins
Interest coverage ratios
Earnings volatility
Cost management
Capital structure
Debt ratios
Distribution of debt maturity
Impact of concentrated ownership on funding capacity
Business Model
Entry barriers
Competitive landscape
Market position
Diversification across clients, products and geographic
Management
Structure of Management
Strategy and Objectives
Performance record