1. Eurodollar bond market. Eurodollar bonds are U.S. dollar-denominated bonds issued outside the United States. Eurodollar bonds make up the largest share of European bonds.
The Eurodollar bond market is not subject to the control and supervision of the U.S. government and is a completely free market. The issuance of Eurodollar bonds is mainly affected by economic factors such as exchange rates and interest rates. Eurodollar bonds have no issuance amount or standard restrictions. They only need to prepare written information such as issuance prospectus in accordance with the listing regulations of each country's exchange. Compared with domestic bonds in the United States, Eurodollar bonds have the advantages of simple issuance procedures and larger issuance amounts. The issuance of Eurodollar bonds is completed by a large-scale subscription group formed by well-known companies from all over the world, making it easier to raise funds around the world.
2. European yen bond market. Euroyen bonds are bonds issued outside Japan with a denomination in Japanese yen. The issuance of Euro-yen bonds does not require approval from various agencies, but does require approval from Japan's Ministry of Finance. Issuing Japanese yen Eurobonds does not require a large amount of documentation and issuance costs are lower.
The main features of European yen bonds are:
(1) The bond issuance is large; Generally, the amount of each issuance is more than 20 billion yen.
(2) European bonds are mostly combined with swap business. Fund raisers first issue Japanese yen bonds with lower interest rates and then exchange them for US dollar floating rate bonds. , thereby obtaining U.S. dollar funds at lower interest rates.
Since the 1980s, European yen bonds have grown rapidly, and their proportion of total European bonds has been increasing day by day. Reasons for the continued growth of European yen bonds
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