The international bond market refers to the financial market formed by issuers and investors of international bonds. Specifically, it can be divided into the issuance market and the circulation market. The issuance market organizes the issuance and subscription of international bonds. Liquidity markets arrange the listing and buying and selling of international bonds. These two markets are interconnected and complement each other to form a unified international bond market.
Development characteristics of the international bond market
1. The main body of financiers is always developed countries. China's share is relatively small.
2. The currency structure has changed.
3. The issuance scale of European bonds is much larger than that of foreign bonds.
4. The structure of international bond categories has changed.
5. Emerging market countries are active, with governments as the main issuing entities.
Introduction to the international bond markets of various countries in the world
The foreign bond market of the United States
The foreign bonds of the United States are called "Yankee Bonds", which have the following characteristics:
1. Issuance amount Large and highly mobile. Since the 1990s, the average amount of each Yankee bond issuance has generally been between US$75 million and US$150 million. Although Yankee bonds are issued on the New York Stock Exchange, their actual issuance areas cover all parts of the United States and can attract funds from all over the United States. At the same time, because the European currency market is the resale market for Yankee bonds, Yankee bonds are actually traded all over the world.
2. Long term. In the mid-1970s, the maturity of Yankee bonds generally ranged from 5 to 7 years. It can reach 20 to 25 years after the mid-1980s.
3. The issuer of the bond is an institutional investor. Such as national governments, international institutions, foreign banks, etc. The buyers are mainly commercial banks, savings banks and life insurance companies in the United States.
4. The number of unsecured issuances is greater than the number of secured issuances.
5. Since the rating results are closely related to sales, they attach great importance to Credit rating.
Japan’s foreign bond market
Japan’s foreign bonds are called samurai bonds. Yen The bonds were first issued by the Asian Development Bank in 1970, and the number surged after 1981, reaching US$3.32 billion in 1982 and US$6.38 billion in 1985, exceeding the Yankee bonds in the same period.
Japanese public bonds lack liquidity and flexibility. It is not easy to do dollar swap business, and the issuance cost is high. It is not as convenient as European yen bonds. At present, most fundraisers who issue yen bonds need to do so in the Tokyo market Financing international institutions and some long-term fundraisers with an issuance period of more than 10 years, and then enterprises or institutions in developing countries with poor credit in the European market. The number of Japanese yen bonds issued by developing countries accounts for 60% of the total Above.
