Definition of Non – Government Issues

Municipal Bonds

Most municipal bonds have a maturity of ten years with semi-annual coupon payments. Different governmental agencies can also issue bonds that may or may not be guaranteed by the government.

Corporate Bonds

Most other Japanese companies prefer issuing bonds directly on the Eurobond market even though the ultimate bondholders are usually Japanese residents. It is also interesting to note that a high proportion of Japanese corporate bonds are either convertible issues or have warrants attached.