Chap12 abp modify international bond markets

Chap12 abp modify international bond markets -...

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01/18/10 Chapter 12 -- International Bond Markets 1 Chapter 12 – International  Bond Markets
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01/18/10 Chapter 12 -- International Bond Markets 2 The world’s bond markets A statistical perspective: The total market value of the world’s bond markets are about 50% larger than the world’s equity markets. Most issues are denominated in U.S. dollars, the euro, the British pound and the Japanese yen.
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01/18/10 Chapter 12 -- International Bond Markets 3 A statistical perspective:  Mid-year 2007, $61.8 trillion in bonds outstanding. $42.1 trillion in bonds are “domestic,” i.e. issued in home country and denominated in home currency $19.8 trillion in bonds are “international” Foreign bonds – issued by foreign borrower but denominated in currency of country where issued Eurobonds – denominated in a certain currency but sold to investors in national capital markets other than the country that issued the denominating currency
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01/18/10 Chapter 12 -- International Bond Markets 4 A Statistical Perspective: (Mid-year  2007) Currency (U.S. $ billions) Percent U.S. Dollar 25,725.3 41.6 Euro 18,428.3 29.8 Yen 6983.0 11.3 British Pound 2668.9 4.3 Other 8067.2 13.0 Total 61,872.7 100
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01/18/10 Chapter 12 -- International Bond Markets 5 Amounts of Domestic and International  Bonds Outstanding (mid-year 2007 in  $bil) Currency Domestic International Total U.S. dollar $18,596.10 $7,129.20 $25,725 Euro $9032.5 $9395.8 $18,428.3 Pound $1033.70 $1,635.2 $2668.9 Yen $6478.2 $504.8 $6983.0 Other $6968.2 $1099.0 $8067.2 Total $42,108.7 $19,764 $61,872.7 (As of Year-End 2003 in U.S. $Billions)
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Chapter 12 -- International Bond Markets 6 International bond market International bond market has two basic components: Foreign bonds – offered by a foreign borrower to investors in a national capital market and denominated in that nation’s currency German MNC issuing $-denominated bonds in US Yankee ($-denominated) foreign bonds, Samurai (¥) bonds, Bulldogs (£) Euro bonds – denominated in particular currency but sold to investors in national capital markets other than the country that issued the denominating currency. Dutch borrower issuing $-denominated bonds to
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Chap12 abp modify international bond markets -...

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