Bull International Trust Limited

The Banking of the future for a project of today

INFO BONDS MARKET


  • The bond market (also known as the credit, or fixed income market) is a financial market where participants can issue new debt, or buy and sell Bonds, Debt, and Securities, known as the Secondary Market, usually in the form of Bonds or Investment Certificates. The primary goal of the bond market is to provide a mechanism for long term funding of public and private expenditures. Traditionally, the bond market was largely dominated by the United States, but today the US is about 44% of the market. As of 2009, the size of the worldwide bond market (total debt outstanding) is an estimated $82.2 trillion, of which the size of the outstanding U.S. bond market debt was $31.2 trillion according to bank for International Settlements (BIS), or alternatively $35.2 trillion as of Q2 2011 according to Securities Industry and Financial markets Association (SIFMA).

    Nearly all of the $822 billion average daily trading volume in the U.S. bond market takes place between brokers, Dealers and large institutions in a decentralized, over the counter (OTC) market. However, a small number of bonds, primarily corporate, are listed on exchanges.

    References to the "bond market" usually refer to the Government bond market, because of its size, liquidity, relative lack of credit risk and, therefore, sensitivity to interest rates. Because of the inverse relationship between bond valuation and interest rates, the bond market is often used to indicate changes in interest rates or the shape of the yield curve. The yield curve is the measure of "cost of funding".

    ‘‘BULL’’ formula announcing your issued bond or New Corporate bond (bond issue by a corporation. It is a bond that a corporation issues to raise money effectively in order to expand its business. The term is usually applied to longer-term debt instruments, generally with a maturity date falling at least a year after their issue date. (The term "commercial paper" is sometimes used for instruments with a shorter maturity.)

    Sometimes, the term "corporate bonds" is used to include all bonds except those issued by government in their own currencies. Strictly speaking, however, it only applies to those issued by corporations. The bonds of local authorities and supranational organizations do not fit in either category.]

    Corporate bonds are often listed on major exchanges (bonds there are called "listed" bonds) and ECNs, and the coupon or obligation (i.e. interest or royalty payment) is not taxable in ‘‘BULL’’ platform dealing only in off-shore location are not taxable. Sometimes this coupon can be zero with a high redemption value. However, despite being listed on exchanges, the vast majority of trading volume in corporate bonds in most developed markets takes place in decentralized, dealer-based, over-the-counter markets.

    Some corporate bonds have an embedded call option that allows the issuer to redeem the debt before its maturity date. Other bonds, known as convertible bonds, allow investors to convert the bond into equity.

    Corporate Credit spreads may alternatively be earned in exchange for default risk through the mechanism of Credit Default Swaps which give an unfunded synthetic exposure to similar risks on the same 'Reference Entities'. However, owing to quite volatile CDS 'basis' the spreads on CDS and the credit spreads on corporate bonds can be significantly different.

    ‘‘BULL’’ may advise and propose to member(s) sales, lease, use as guaranty, swap exchange with registered bond, and line of credit, capitalization and others financial formulas in order to raise funds for existing or project financing

 

 

CONTACT US


Head Office
625, D.R. Walwyn Square, Charlestown Nevis. British West Indies (B.W.I)

 

European representative Office
2, Lansdowne Row, 455, Berkeley Square London, W1J 6HL. United Kingdom

E-mail: bullintertrust@bullintertrust.com

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