Foreign bonds and Eurobonds
List some of the differences between the foreign bonds and Eurobonds and also describe why Eurobonds make up lion’s share of the international bond market.
Expert
Two segments of international bond market are:
a) Eurobonds and b) Foreign bonds.
Foreign bond issues are the one that is provided by the foreign borrower to investors in the national capital market and is denominated in that nation’s currency. Eurobond issue is one that is denominated in particular currency, however, sold to investors in the national capital markets other than the country that issues denominating currency.
Eurobonds make up over 80 percent of international bond market. Two important causes for this arise from the fact that U.S. dollar is the currency that is frequently sought in the international bond financing. Firstly, Eurodollar bonds is brought to the market more rapidly as compared to the Yankee bonds since they are not provided to the U.S. investors and therefore do not have to meet the strict SEC registration requirements. Secondly, Eurobonds are bearer bonds which give anonymity to the owner and therefore provide the mode for evading the taxes over the interest received. Due to this, investors are usually willing in order to accept the lower yield on Eurodollar bonds as compared to the registered Yankee bonds of comparable terms, where the ownership is recorded. For borrowers, lower yield means a lower cost of debt service.
Select the right answer of the question. Assume that, for every 1-percentage point decline of the discount rate, commercial banks collectively borrow an additional $2 billion from Federal Reserve banks. Also suppose that reserve ratio is 20 percent. If the Fed incre
Techniques of valuation of goodwill: A) Average profit technique B) Super profit technique C) Capitalization technique
How to handle the Credit Claims?
What is meant by the Triangular arbitrage? Explain about the condition which provides rise to opportunity of the triangular arbitrage?
What did Freedmen’s Bureau do?
State the fundamental characteristics of bureaucracies.
Is real gross profit ratio is bigger than standard gross profit ratio?
Define Goods briefly as an inventory?
Define status and role, explain the difference between the two, provide illustrations.
Wheather it is correct or not that standard costing is a separate system in accounting?
18,76,764
1951730 Asked
3,689
Active Tutors
1436593
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!