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  • Bonds

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    Himanshu Kapila
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    Geographical classification of bonds include: 1. Domestic bonds are issued in the same country, while foreign bonds are issued by a foreign country in that country's currency but registered elsewhere. 2. Yankee bonds are issued by US companies and traded in China, while Euro bonds are issued by UK companies denominated in US dollars but traded in China without registration in the country of trade. 3. Masala bonds are issued by Indian companies traded outside of India and payable in foreign currencies like US dollars.

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    Geographical classification of bonds include: 1. Domestic bonds are issued in the same country, while foreign bonds are issued by a foreign country in that country's currency but registered elsewhere. 2. Yankee bonds are issued by US companies and traded in China, while Euro bonds are issued by UK companies denominated in US dollars but traded in China without registration in the country of trade. 3. Masala bonds are issued by Indian companies traded outside of India and payable in foreign currencies like US dollars.

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    9 views1 page

    Bonds

    Uploaded by

    Himanshu Kapila
    Geographical classification of bonds include: 1. Domestic bonds are issued in the same country, while foreign bonds are issued by a foreign country in that country's currency but registered elsewhere. 2. Yankee bonds are issued by US companies and traded in China, while Euro bonds are issued by UK companies denominated in US dollars but traded in China without registration in the country of trade. 3. Masala bonds are issued by Indian companies traded outside of India and payable in foreign currencies like US dollars.

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    of 1

    Geographical classification of bonds (bearer

    instruments)

    --domestic bonds= issues in same country


    --foreign bonds= issued by the foriegn country, trade in same currency they ae
    trading, and have to registered in same country
    --yankee bonds= issued by US companies traded in china.
    --euro bonds= issued by UK companies, denominated in US dollars and trade in china.
    (they are not registered in the country they are traded)
    eg:- japan company issues bonds called as EURO-YEN bond
    --masala bonds= indian company, not trade in india and trade in foreign and recieve
    payment in US dollars or the foriegn currency.

    ISSUING BONDS THROUGH SPECIAL PURPOSE ENTITIES (SPE)


    there take loans assets from the banks and pay the loan amount to the bank.
    types for mortgages
    1. Subprime mortgage:- low income, insure jobs,history of default, bad credit
    rating and low close to value of borrowers.
    2. Prime mortgages :- hoigh income, secure jobs, good history, good credit rating
    and high value of borrowings.
    THESE LKIND OF BONDS OR PRACTICE IS DONE BECOUSE OF TO TRANFER THE RISK FROM ONE
    PERSON TO ANOTHER...
    FROM BANK TO SPE TO BONDS HOLDERS...

    MBS:- morgage backed securities (tier are created to payment of loans)


    the bonds are issued at discount, par and premium according to the bonds int.
    or yield value of the bonds.
    the payments are given in the form of waterfall structure...
    'a' gets first , 'b' gets after 'a', and 'c' gets the remaining.

    ABS:- Assets backed securities

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