International bond markets

Tandoc & Tomawis

GLOBAL FINANCIAL MARKETS
• Internal Financial Market (National Financial Market)
Domestic Financial Market
Foreign Financial Market

• External Bond Market (international bond Market)

-offshore bond market
-Euro bond market
Classification by trading Blocs
• Dollar bloc
• Euro bloc
• Japan
• And emerging markets

1. Euro zone market bloc= Germany, Italy, France, Holland, Belgium,

Austria, Spain.
2. None-euro zone market= Norway, Denmark and Sweden.
Euro Bond Market
• Composition of the underwriting syndicate
• It is not regulated by a single country whose currency is used to pay bond
holders.

Issuers of foreign bond includes:

NATIONAL GOVERNMENT
1.) Subdivisions. 2.) Corporations. 3.) Supranationals
World Bank
Inter-American
Development Bank
Securities issued in the eurobond
• Floating rate note • Dual- currency • Convertible Bonds
1. Will either have bonds &bonds w/
a stated 1. Some issues warrants
maturity date or pay coupon 1. Is one that can be
it may be interest in the converted into
perpetual issue. currency but another asset
pay the
principals in a
different
currency.
Emerging Market
Bonds
-Governments of emerging market countries issue
either brady bonds, Eurobonds or Global Bonds

BRADY BONDS
- bonds that typically represents a
restructuring of non performing bank loans of
government into marketable securities
The European Covered Bonds Market
-one of the largest sectors of the European bind
market
-the pool of loans that is not collateral is referred
to as “cover pool”

The German Mortgage-bond Market

-called “pfandbrief market”
-largest covered bonds market