Bond market in belgium

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  • I AM A DIRECT MANDATE TO A PROVIDER THAT OFFER BG/SBLC,SS MTNs, BANK DRAFT, LTN & CASH LOAN, THE PRICE FOR LEASE BG IS 5% +2%, THE PRICE FOR PURCHASE BG 35% +2%, THE LOAN INTEREST RATE PER ANNUAL IS 2%, UPPON ACCEPTANCE OF OUR PROCEDURE WE SHALL PROCEED ACCORDINGLY AND CLOSE DEAL WITHIN THE STIPULATED DAYS ON THE PROCEDURE. CONTACT ME VIA EMAIL: unofficialfunddelivering@careceo.com pertracogroupltd@gmail.com SKYPE: pertracogroup33
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Bond market in belgium

  1. 1. An FMRS Case Presentation -Vinayak Panikkar Bond Market in Belgium
  2. 2. The Belgian Bond Market- An overview  Belgian debt market is a small market, mainly domestic;  Belgium issues each year just under 40 billion Euros in bonds.  Belgium, like other European countries has its domestic bond markets in which the government, sub-sovereign entities and companies issue bonds and individual investors participate.  However, bond markets in European countries are increasingly behaving like a single market.
  3. 3. Types of Bonds- Bond market Sectors  Government bonds [1]  Sub-sovereign bonds [2]  Corporate bonds [3]  Asset-backed- collateralized bonds [4] (Each with different characteristics, risk, reward)
  4. 4. [1] Government bonds/sovereign bonds  Issued by the central government of Belgium;  Purpose: To cover the deficit, to refund existing debt, to raise capital;  Highest quality, minimal risk bonds;  In Belgium, individual investors prefer to invest in bonds directly while in other European countries such investments take place primarily through funds.
  5. 5. [2]Sub-sovereign Bonds  Issued by: regions, provinces, states, municipalities or supranational institutions (supranational entity is formed by two or more central governments to promote economic development for the member countries)such as the World Bank and the European Investment Bank  The market for sub-sovereign bonds in Belgium has less individual participation than in the US.
  6. 6. [3] Corporate Bonds  2 Categories: investment-grade corporate bonds (high credit quality) and speculative-grade (lower credit quality)  Individual investors are less involved directly in the corporate bond market in Belgium than in the US.  In order to promote the listing of corporate bonds on the Brussels market, NYSE Euronext set up a ‘bond taskforce’ in 2009. This taskforce was composed of representatives of the major banks, brokers, and law firms, and was strongly supported the FSMA by the Belgian regulator.
  7. 7. [4] collateralized bonds  collateralised debt instrument is a kind of promissory note backed by collateral;  Securitisation, Structured Products and Covered Bonds;  one of the fastest developing investment vehicles in the last decade.  The collateralised debt market has been the one most severely hit by turbulence since the summer of 2007, and so is undergoing changes.
  8. 8. Types of procedures used to place bonds on the market  Tenders [1]  Bank syndicates [2]  Bonds issued to individuals [3]
  9. 9. [1] Tenders  A tender is a kind of bond sale auction offered by the State. During these operations, the debt agency announces the amount it wishes to raise and the characteristics of the bonds (coupon, maturity, etc.).  The goal for the debt agency is to obtain the best possible price. The primary dealers and the recognized dealers then offer the bonds to their clients.  A number of carefully selected banks, primary dealers and recognized dealers then participate in the tender and offer their price. The tender is based on these offers.
  10. 10. [2] Syndicate Loan  The syndicate loan is a procedure by which the State issues new bonds through a pool of banks.  The latter are then responsible for offering these bonds to investors on the bond market.  Belgian medium and long term debt bonds are called "OLO" ("Obligations Linéaires"). They are denominated in Euros and are issued by auction or through a bank syndicate, during the first phase of the bond issue. These bonds are generally set at fixed rates and their duration ranges from 2 to 30 years.
  11. 11. [3] Bonds to individuals  The Debt Agency of the Kingdom of Belgium (l’Agence de la Dette du Royaume de Belgique) is responsible for managing the country's public debt  the debt agency issues debt securities directly to individuals, 4 times per year.  The bonds available to private individuals are government bonds. They are issued for periods of 3, 5 and 8 years, with a nominal value of 200 Euros. Their coupon is fixed. They are issued four times a year in March, June, September and December by institutions approved by the Ministry of Finance.

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