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Mindmap FI - M2

The document outlines the structure of fixed-income markets, detailing various issuers such as households, corporates, and governments. It categorizes financial instruments into capital protected, yield enhancement, participation, and leveraged instruments, while also discussing aspects like credit quality, maturity, and currency denomination. Additionally, it covers trading mechanisms, including primary and secondary markets, and types of bonds issued by different entities.

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26 views1 page

Mindmap FI - M2

The document outlines the structure of fixed-income markets, detailing various issuers such as households, corporates, and governments. It categorizes financial instruments into capital protected, yield enhancement, participation, and leveraged instruments, while also discussing aspects like credit quality, maturity, and currency denomination. Additionally, it covers trading mechanisms, including primary and secondary markets, and types of bonds issued by different entities.

Uploaded by

2292364
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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READING 40: FIXED-INCOME MARKETS: ISSUANCE, TRADING, AND FUNDING

• Households
• Non-financial corporates
• Government 1. Issuers 1. Capital protected instruments Guaranteed certificate
• Financial institutions
Structured 2. Yield enhancement instruments Credit-linked note (CLN)

• Investment grade financial 3. Participation instruments


2. Credit quality
• Non-investment grade instruments C = Fixed rate – a * MRR
Classifications 4. Leveraged
• Money market Inverse floater
3. Maturity of FI markets instruments
• Capital market
leveraged inverse deleveraged inverse
4. Currency denomination
Interbank offered rates Floating-rate • the repo term.
5. Coupon
• the credit quality of the collateral security.
Fixed-rate structure Repo rate • the collateral security is delivered to the lender.
Repo/ • the interest rates for alternative sources of funds
6. Geography
Reverse • the repo term.
7. Others R40 repo Repo margin
•
•
the credit quality of the collateral security.
the credit quality of the borrower
Underwritten offering
• the D and S of the collateral security.
Best-efforts offering Public offering
Shelf registration 1. Issuing bonds in • Bilateral loans
Bank debt
• Syndicated loans
Auction primary market
Rollover risk vs Backup line
Private placement Issuing and 5. Corporations
Commercial credit
Where to trade?
2. Trading bonds
trading bonds paper • USCP
• ECP
Settlement date? in Secondary
Bonds
Tender offer markets
Checking accounts
• Backed by tax authority
• Issued in domestic/foreign Securities Retail Money market accounts
Characteristic
currency 1. Sovereign issued by: Savings accounts
• Fixed rate governments
• Floating rate Types 6. Banks Central bank funds (reserve
• Inflation-indexed bonds funds)
2. Non-sovereign governments Wholesale Interbank funds
3. Quasi-government bonds
4. Supranational bonds CDs

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