The Euronote facility was a major innovation in the 1980s. It is a cross between a short-term bond and a bank loan.....
FRN have traditionally been issued with a minimum rate embedded in the contract. Some, called minimax FRNs, have been issued with a minimum and a maxi....
Eurobonds are different from foreign bonds. Foreign bonds are issued by a borrower in a domestic capital market other than its own and usually denomin....
UK government debt, called gilts, constitutes the most important sector of the sterling denominated debt market. Of the four classes of gilts issued b....
Most municipal bonds have a maturity of ten years with semi-annual coupon payments. Different governmental agencies can also issue bonds that may or m....
A mortgage-backed security is supported by an undivided interest in a pool of mortgages or must deeds held by private lenders or government agencies. ....
The growth of Euro-currency market has produced far reaching effects on the international financial system and the monetary scene. Firstly, these floa....
The Euro-currency market has growth enormously since its inception in 1958. The principal agencies for collection of data on operations in this market....
The volume of new equity issues in the international markets increased dramatically between 1983 and 1987 and again after 1989. The ‘90s saw a growi....
In the US money market, Repurchase Obligations (REPOS) are used by securities dealers to finance their holdings of securities. This is a form of colla....
In this section, we will briefly describe some of the common short-term funding instruments such as commercial paper (CP), bankers’ acceptances (BAs....
Bonds can be defined as negotiable debt instruments with original maturity in excess of one year. The domestic bond markets are dominated by the respe....
Global financial markets are a relatively recent phenomenon. Prior to 1980, national markets were largely isolated from each other and financial inter....
Before we examine various funding avenues in the global market we must discuss the issues involved in choosing a particular mix of financing in terms ....
The most common form of international lending by commercial banks is the Syndicated Floating Rate Loan.....
The Eurocurrency market is entirely a wholesale market. Transactions are rarely for less than $1 million and sometimes they are for $100 million. The ....
The most important distinction between the Eurodollar banking market and domestic banking is that Eurocurrency markets are not subject to domestic ban....
The Euromarkets are banking markets for deposits and loans. They are located outside the country of the currency in which the claims are denominated.....