Bond Paper
International Finance
Bond Paper
A bond is an indebted title that is issued by national, regional or local governments or by banks or international financial organizations, inwhich the issuer agrees to repay the principal of the bond together with interest on the same. Bonds are a highly regarded source of funding long-term. The international type bonds can come with adenominated different currency according to the issuing country. Most international bonds have a nominal value, interest rate and maturity. Entities that issue bonds often do this to help finance purchasesof property and equipment or to help finance current operations.
Generally, the international bonds are sold to companies that are international and are operating in other countries outside theirhome country. The markets for the internationals bonds are markets that include the Eurobond market as the foreign bond market among others. The types of international bonds are: global, foreign, Brady,and Eurobonds.
A global bond is a bond issued simultaneously in several international financial centers. In contrast to Eurobonds, global bonds can be issued in the currency of the country ofissuance. This means that these bonds are issued in more than one stock market in the world, which, being more than one, may also include local markets. The purpose of the global bonds is to help indiversifying an investment portfolio and to improve the rate of return. The global bonds types are government and international corporate bonds.
A foreign bond is the one that is issued by a foreigncompany in its domestic market. The purpose of this bond is for the foreign companies to issue bonds in other countries to reach the market of that country, because there may be more money available inanother country. The types of foreign bonds include Samurai, Euro, Matilda, Bulldog, Matador and American bonds. The risks for foreign bonds are foreign exchange risk and political risk.
The Brady...
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