Fixed Income analysis - Structure of Bond market

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Joined: Wed Jun 25, 2014 8:09 am

Fixed Income analysis - Structure of Bond market

Postby alwaysenjoy.indu » Wed Jun 25, 2014 6:56 pm

Before I proceed for further classes in Fixed Income Analysis program, I would like to understand the following

•Basic structure of Bond and Who are the participants or players of the Bond market in real time scenarios?
•As per my research I found Issuers - Underwriters - Borrowers?
• Are Underwriters and investment bankers are same ?
•Generally who issues Bonds and how they contact underwriters ?
•Will underwrtiers purchase the bond from the issuer and later sell the same to public ? if yus underwriters may purchase at x price and sell at y price right?
•If we have to look the performance of the bond do we have to look the investment bankers or underwriters performance of their companies to decide Buy/sell the bond?

•What is the criteria for the company is required before they issue the Bond ?
• How it actually works in real time ?
•Does Bond market concepts are same across the globe or it various from country to country ?

Finance Junkie
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Fixed Income analysis - Structure of Bond market

Postby edupristine » Mon Jun 30, 2014 1:56 pm

Bond structure: There are many types of Bond( Coupon bond, zero coupon bond, deferred coupon bonds). Bonds is issued by various corporations, Sovereign governments, Non- Sovereign governments etc.
Underwriters: Investment bankers do the job of underwriting.
Usually it depends upon the situation whether it is commitment basis( they will buy bonds) or Best effort basis( They will only push their efforts).
Ya sure they will purchase the bonds at discount.
Bond is a kind of loan taken by a government or corporation through public.
In real case scenario it is cheaper source because the borrowing cost of a loan from bank is prohibitive.
Bond market concept is same across the globe.

Hope it is clear.

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