Eurobonds Flashcards

1
Q

What are Eurobonds?

A

Bonds issued and sold outside of their home country (e.g. Eurobond issued in UK issued in USD).

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2
Q

What is the Structure of the Eurobond Issuance?

A

1) Issuer + lead manager work on the details of the issue.
2) Syndicate of banks are established and agree to sell the securities.
3) Syndicate sell the Eurobonds to their clients.

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3
Q

What form of Share are Eurobond issued in?

A

Bearer shares.

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4
Q

Where are Eurobonds held?

A

Immobilised in share depositiories (e.g. Euroclear or clearstream).

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5
Q

How are Eurobonds regulated?

A

No national regulation, thus investors receive interest gross.

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6
Q

Who’s responsible for paying tax?

A

Investors due to no national reg.

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7
Q

Settlement period for Eurobonds?

A

T+2.

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8
Q

Examples of Eurobonds?

A
  • ZCBs.
  • Stepped bonds.
  • FRNs.
  • Fixed coupon.
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9
Q

What’s a Stepped-bond?

A

One who’s coupon increases over time.

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10
Q
A
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