Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Domestic: This deals with bonds which are issued by locally domiciled
issuers. It is therefore the simplest market and the one that is usually
assumed to be the case.
International or Euro
EUROCURRENCY has grown mainly since World War II. There have
been a number of reasons for this, the main ones being:
a) During the Cold War the Eastern Block countries were unable to trade
internationally with their own currencies and so held U.S. dollars. Concern grew
that the U.S. might freeze their assets held in American banks as part of its cold
war strategy. They therefore moved their funds to two Soviet controlled banks in
Europe. One of those banks was called Banque Commercial pour lEurope du
Nord (or Eurobank for short) and so the prefix Euro was used to describe such
deposits.
1) As they are outside national jurisdiction they are less regulated and so it is
possible to issue in several countries simultaneously.
It should be noted that, while they are technically not regulated by the
country which issued the currency, the use of foreign exchange and capital
restrictions can allow them to exert some influence on the markets.
Also, although usually traded Over the Counter, Eurobonds may be quoted on
a recognised exchange so as to allow some institutional investors to buy the
bonds. (Where national regulations restrict their ability to invest in certain
instruments.)
In 1989 the World Bank issued a 10 year $1.5billion offering on the Eurobond
markets and also on the Yankee bond market. This made it a true global
bond.