Professional Documents
Culture Documents
Chapter 7
The International Bond Market
International Capital Markets
• Consist of:
• Foreign Bonds
– Issued by a non-resident and denominated in the
currency of the country in which it is being offered.
• GE issuing a yen denominated bond in Japan
• Eurobond
– Issued by a non-resident and denominated in a
currency other than the currency of the country in
which it is being sold.
• GE issuing a dollar denominated bond in Europe.
Some Beginning Data
• Year end 2002, the face value of bonds
outstanding in the world was about $37 trillion.
– Domestic bonds represented the largest share of this
amount, or about 82%
– International bonds only represent about 18%
• The total market value of the world’s bond
markets are about 50% larger than the world’s
equity markets.
• 50% of the world’s outstanding bonds are
denominated in U.S. dollars, followed by the
euro (20%) and the yen (17%).
International Bond Data
• Year end 2002, international bonds
outstanding totaled $6.8 trillion.
Total 6,839.1