GLOBAL MARKET

Name
Karan Bhosle
Varun Jha

Roll no
2105
2117

GLOBAL MARKET
Global market means the activity of buying or selling goods and
services in all the countries of the world, or the value of the goods
and services sold.
In terms of investing and capital flow, a global market is the main
driving force behind international finance and trade. It deals with
concepts on both a micro and macroeconomic scale. Concepts
such as futures, swaps and options are a centralized concern in
terms of the global economy, impacting the success of
investments in different markets. While one geographical region
may provide a better value for certain commodities or industries,
others often reward the investor with a higher rate of return for
the same amount of capital influx.

INTERNATIONAL BONDS
International bonds are debt securities issued by foreign
companies or governments and sold domestically.
International bonds include:
1. Euro Bonds
2. Foreign Bonds
3. Global Bonds

EURO BONDS
A Eurobond is an international bond that is denominated in a
currency not native to the country where it is issued. Also called
external bond. It can be categorised according to the currency in
which it is issued. London is one of the centers of the Eurobond
market, with Luxembourg being the primary listing center for
these instruments. Eurobonds may be traded throughout the
world - for example in Singapore or Tokyo.
Eurobonds are named after the currency they are denominated in.
For example, Euroyen and Eurodollar bonds are denominated in
Japanese yen and American dollars respectively.
The word Eurobond was originally created by Julius Strauss. The
first Eurobonds were issued in 1963 by Italian motorway network
Autostrade, who issued 60,000 bearer bonds at a value of
USD250 each for a fifteen-year loan of USD15m, paying an annual
coupon of 5.5%. The issue was arranged by London bankers S. G.
Warburg and listed on the Luxembourg Stock Exchange.
The majority of Eurobonds are now owned in 'electronic' rather
than physical form. The bonds are held and traded within one of
the clearing systems. Coupons are paid electronically via the
clearing systems to the holder of the Eurobond

FOREIGN BONDS
A foreign bond is a bond that is issued in a domestic market by a
foreign entity, in the domestic market's currency. A foreign bond is
most often issued by a foreign firm to raise capital in a domestic
market that would be most interested in purchasing the firm's
debt.
Bonds by issuers who do not reside in the country where they are
issued and traded . An example of a foreign would be a bond that
is issued by a non-U.S. entity but then trades in the U.S. market.
Such bonds can be issued in any currency and can have colorful
nicknames such as "Yankee Bonds", which are foreign bonds
issued in the U.S., or "Bulldog Bonds", which are sterlingdenominated bonds traded in the U.K. foreign bond mark. One
last type of a foreign bond is a Supranational. These bonds are
issued when two or more central governments issue foreign
bonds to promote economic development for the member
countries. These include bonds issued by the International Bank
for Reconstruction and Development, or World Bank, and the
International American Development Bank.

GLOBAL BONDS
A global bond is a bond which is issued in several countries at the
same time. It is typically issued by a large multinational
corporation or sovereign entity with a high credit rating. By
offering the bond to a large number of investors, a global
issuance can reduce borrowing cost.
These bonds are usually issued by large multinational
organizations and sovereign entities, both of which regularly carry
out large fund-raising exercises. By issuing global bonds, an
issuing entity is able to attract funds from a vast set of investors
and reduce its cost of borrowing.
Global bonds are issued in different currencies and distributed in
the currency of the country where it is issued. For example, a
global bond issued in the United States will be in US Dollars
(USD), while a global bond issued in the Netherlands will be in
euros. Bonds are loaned in terms of years; for example, a threeyear $2 billion USD global loan will be paid back by the country it
is loaned to within three years at face value plus the interest rate.