A bond is a (written and signed promise) debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate (Coupon Rate).
Fixed Income securities- Analysis and Valuation. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=r9j6Bu3aUNI
An investor is a person who allocates capital with the expectation of a future financial return. Types of investment include : equity , debt securities , real estates, currency , and commodity , derivatives such as put and call options, etc,
Presentation on "Capital Market"
1.definition and characteristics
2.function and players
3.importance/role and types
4.factor and structure
5.reforms and development
This presentation provides readers with an introduction to bonds and their many characteristics. Topics discussed such as types of bonds, bond trading, valuing bonds and much more are highlighted in this presentation and can be further discussed on our site www.finpipe.com.
Fixed Income securities- Analysis and Valuation. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=r9j6Bu3aUNI
An investor is a person who allocates capital with the expectation of a future financial return. Types of investment include : equity , debt securities , real estates, currency , and commodity , derivatives such as put and call options, etc,
Presentation on "Capital Market"
1.definition and characteristics
2.function and players
3.importance/role and types
4.factor and structure
5.reforms and development
This presentation provides readers with an introduction to bonds and their many characteristics. Topics discussed such as types of bonds, bond trading, valuing bonds and much more are highlighted in this presentation and can be further discussed on our site www.finpipe.com.
Master of science in Interior Designing
1st year assignment
2 brick thick wall flemish Brick bond: In this system of bonding brick work, each course presents the same appreance both in the fornt and back elevations. This type of bond is best suited from consideration of economy and appereance.
Standard Operating Procedure (SOP) for Information Technology (IT) OperationsRonald Bartels
Title of SOP
Dates
Issue date
Effective date
Document history
Approvals
Description
Purpose and background
Scope
Definitions
Operations
Maintenance
Projects
Business justification and project request form
Project Lite methodology (mini projects)
Large projects
Fulfilment
Example - Video conferencing
Quality and targets
Vital functions affected by this SOP
Lessons learned
Record and Document Management
References
Standards
Images
Diagrams
Equipment, hardware and software lists
Labelling and naming standards
Checklists
Installation
Configuration
Testing
Financial
Budget exception / deviation
Risk
The CRAMM Risk management methodology
Meerkat Risk Methodology
Information Security
Physical security
Service Continuity
Risk evaluation and control
Business impact analysis
Develop continuity strategies
Emergency response and operations
Developing and implementing the BCP
Awareness and training program
Maintaining and exercising the BCP
Standards and guidelines
Escalations
Roles and responsibilities
The Uberfingers team leaders dashboard
Shifts
Training
Monitoring requirements
Change
Stakeholders
Request for change
Apply for testing
Configuration management database
Impact and risk assessment
Change Advisory Board (CAB)
Installation in testing
Test installation review
Testing in progress
Operational acceptance phase
Ready for live
Implementation in live
Go Live acceptance
Live
Integration with Service Desk
Change types
Vendors
Review and evaluation of vendors
Maintenance
Warranty
Handling Incidents and Troubleshooting procedures
The Expanded Incident Lifecycle
Service review
Meetings
Previous period
Performance review
Current issues
Peripheral issues
Grading of service desk interaction
Grading of service desk escalation
Checklist for SOP
Addendum
Service catalogue
CEI Compliance is the UK's fastest growing regulatory consultancy and provides associate opportunities to consultants and cost effective value to financial services and other regulated companies.
We show you the methodology for conducting the Compliance Risk Assessment and how to provide meaningful action plans.
Brief overview of Debentures & Bonds and Term Loans.
A project given to our class group for the subject Corporate Finance. Hope it helps.
Contact for additional information
www.facebook.com/Sahith1
ansahithkrishna@gmail.com
Debentures are a debt instrument which are issued by a Company. The main feature of debentures is that they are long-term securities yielding a fixed rate of interest against assets
Basic of business and commerce
Business: The term business has been taken from word busyness which means being busy. It refers to organized efforts of an enterprise to produce and supply consumers with goods and services for a profit.
It refers to any human productive and economic activity which lead to earning profit.
Business Activity = Production + Distribution of goods and services for earning profit.
Production refers to producing/manufacturing/converting raw material into semi-finished & finished products. Mainly this activity takes place in industry/factory.
Distribution= Refers to the placement or delivery of products to customers/ consumers.
Business studies is an academic subject taught in schools and at a university level in many countries. Its study combines elements of accountancy, finance, marketing, organizational studies and operations.
Summary of Market Structures
Market structure is the interconnected characteristics of a market, such as the number and relative strength of buyers and sellers, degree of freedom in determining the price, level and forms of competition, the extent of product differentiation and ease of entry into and exit from the market
Monopolistic Competition
Definition: Monopolistic competition is the market structure where a large number of firms that produce differentiated products which are close substitutes for each other.
In other words, large sellers selling the products that are similar, but not identical and compete with each other on other factors besides price
The monopolistic competition combines elements of both monopoly and competition. Since each firm sells a differentiated product, it has some control over the price at which it sells its output.
Monopoly Competition
Monopoly (from the greek “mónos”, single, and “polein”, to sell) is a form of the market structure of imperfect competition, mainly characterized by the existence of a sole seller and many buyers. This kind of market is normally associated with the entry and exit barriers.
In economics, a monopoly refers to a firm which has a product without any substitute in the market. Therefore, for all practical purposes, it is a single-firm industry.
A monopoly is a firm that supplies all of the output in a market.
Perfect Competition
Market structure is the interconnected characteristics of a market, such as the number and relative strength of buyers and sellers, degree of freedom in determining the price, level and forms of competition, extent of product differentiation and ease of entry into and exit from the market
Market & Market Structure
“Market is an area or atmosphere of potential exchange”
~Philip Kotler
“Market is not a geographical meeting place but as any getting together of buyers and sellers, in person, by mail, telephone, telegraph and Internet or any other means of communication”
~ Prof. Mitchel
The input of Elasticity in Decision Making
The concept of price elasticity of demand has important practical applications in managerial decision-making.
Uses of price elasticity can be pointed out as below:
Price fixation
Price discrimination
Public utility pricing etc....
Elasticity of Supply
The elasticity of supply can be defined as “the degree (measure) of responsiveness in quantity supplied to a change in price”.
It is also defined as the percentage change in quantity supplied divided by percentage change in price.
It represents the rate of change in quantity supplied due to a change in its own price.
Elasticity of supply can be defined as “the degree (measure) of responsiveness in quantity supplied to a change in price”.
It is also defined as the percentage change in quantity supplied divided by percentage change in price.
It represents the rate of change in quantity supplied due to a change in it’s own price.
Cross Price Elasticity of Demand
The cross elasticity of demand measures the responsiveness of the quantity demanded a good to a change in the price of another good.
If the cross elasticity is negative, the commodities are compliments.
If the cross elasticity is positive, the commodities are said to be substitutes.
Income Elasticity of Demand
Income is an important variable affecting the demand for a good.
When there is a change in the level of income of a consumer, there is a change in the quantity demanded of a good, other factors remaining the same.
Elasticity of Demand
Law of demand explains the directions of changes in demand. A fall in price leads to an increase in quantity demanded and vice versa.
But it does not tell us the rate at which demand changes to change in price.
The concept of elasticity of demand was introduced by Marshall.
This concept explains the relationship between a change in price and the consequent change in quantity demanded.
Nutshell, it shows the rate at which changes in demand take place.
Market Equilibrium
Equilibrium is a situation in which opposing forces balance each other. Equilibrium in a market occurs when the price balances the plans of buyers and sellers.
The equilibrium price is the price at which the quantity demanded equals the quantity supplied.
The equilibrium quantity is the quantity bought and sold at the equilibrium price.
Price regulates buying and selling plans.
Price adjusts when plans don’t match.
Supply and its concept
If a firm supplies a good or service, then the firm
1. Has the resources and the technology to produce it,
2. Can profit from producing it, and
3. Has made a definite plan to produce and sell it.
Resources and technology determine what it is possible to produce. Supply reflects a decision about which technologically feasible items to produce.
The quantity supplied of a good or service is the amount that producers plan to sell during a given time period at a particular price.
Determinants of demand
The demand for a product is influenced by a number of factors. Determinants of demand (also called factors affecting demand) are the factors which cause the demand curve to shift.
Exceptions to the Law of Demand
A normal demand curve falls downward from left to right. The basic feature of the demand curve is negative sloping
But sometimes the demand curve may slope upward from left to right. In other words, it may have a positively inclined curve.
These phenomena may due to:
Giffen paradox
Veblen or Demonstration effect.
Ignorance.
Speculative Effect.
Fear of Shortage.
Necessaries
Brand Loyalty
Festival, Marriage etc.
The slope of the demand curve
The demand curve generally slopes downward from left to right.
It has a negative slope because of the two important variables price and quantity work in the opposite direction.
The fundamental reasons for the demand curve to slope downward are as follows:
Law of Diminishing Marginal Utility
Law of Equi-Marginal Utility
Income Effect
Substitution Effect
Demand
In economics “Demand” means the quantity of goods and services which a person can purchase with a requisite amount of money.
“Demand means the various quantities of goods that would be purchased per time period at different prices in a given market.
Islamic Economic System
Islam is a complete code of life. It is not only concerned with the spiritual upliftment of human beings, it is equally concerned about their material and physical well-being. Islam guides its followers in financial and economic matters, in social and political affairs, and also in moral and personal spheres of human life.
"Whatever is in the heavens and the earth belongs to Allah." (2:284)
Allah is the owner of the whole universe. It is in this capacity that He has allowed us to own theblessings of this world by saying,
"He has created for you whatever that is in the earth."(2:29)
However, Islam also wants to prevent the excessive accumulation of wealth in the hands of a few peopleso the society may not fall into two classes: one is overstuffing, while the other is starving.
The Qur'an justifies the concept of tax by saying:
"...so that (the wealth) may not become a monopoly of the rich among you." (59:7)
Islam has prohibited
Usury (Riba), Interest
Hoarding
Speculation
Insurance
Overtrading
Sale without possession (Calf in the womb, Fishes in Ponds etc.)
Securing profits by exploiting the immoral desires of people etc.
Socialism:
Collective ownership and democratic control of the material means of production by the workers and the people
Socialism is a term applied to an economic system in which property is held in common and not individually, and relationships are governed by a political hierarchy. Common ownership doesn't mean decisions are made collectively, however. Instead, individuals in positions of authority make decisions in the name of the collective group.
Socialists argue that socialism would allow for wealth to be distributed based on how much one contributes to society, as opposed to how much capital one holds.
Mixed Economy
Any economy in which private corporate enterprises and public sector enterprises exist side-by-side, and decisions taken through market mechanism are supplemented by some form of partial planning, is to be described as a mixed economy.
This system overcomes the disadvantages of both the market and planned economic systems.
Provides a clear demarcation of the boundaries of the public sector and private sector so that the core sector and strategic sectors are invariably in the public sector.
The government intervenes to prevent undue concentration of economic power and monopolistic and restrictive trade practices
The rights of the individual are respected and protected subject only to the requirements of public law and order and morality
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
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Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
5. Outline
• Introduction to Bond
• History of Bond
• Features of Bond
• Classification of Bond
• Major Types of Bond
• Other Types of Bond
• Difference Between
Bond and Debenture
Bond and Share
Bond and Loan
6. Introduction to Bond
• A bond is a debt instrument issued by governments,
corporations and other entities for raise funds.
Definition
• A bond is a (written and signed
promise) debt investment in which an
investor loans money to an entity (typically
corporate or governmental) which borrows
the funds for a defined period of time at a
variable or fixed interest rate (Coupon
Rate).
7. Definition
• A bond is written and signed promise to pay a certain
sum of money on a certain date.
• A bond is a (written and signed promise) debt
investment in which an investor loans money to an
entity (typically corporate or governmental) which
borrows the funds for a defined period of time at a
variable or fixed interest rate (Coupon Rate).
9. History of Bond
• Bonds have been around for thousands of years,
dating back to as far as 2400 BC.
• Throughout the centuries, the use of bonds has
grown exponentially, with both governments and
companies using these securities for crucial
funding.
10. The First Bond Ever 2400 B.C.
• The first recorded bond in history dates back to 2400
B.C. – a stone discovered at Nippur, in Mesopotamia,
now present-day Iraq.
• This particular bond guaranteed the payment of
grain by the principal and the surety bond
guaranteed reimbursement if the principal failed to
make payment. Corn was the currency of that time
period.
11. Fast Forward: Venetians Create Advanced Bond
Markets
• During the 1100s, Venice began issuing government
bonds to fund its wars, known as the Presiti.
• The city continued to evolve its bond market
throughout the 14th century, when denizens of
Venice could purchase and trade government
securities, which paid the owner an endless annuity
at a set rate.
13. Feature of Bond
• Principal/Nominal/Par/Face-value
• Maturity
• Coupon/Interest
• Credit Quality
• Embodied Options
14. Classification of Bonds
• Secure and Unsecure
• Term bond , Serial Bond and Callable Bond
• Convertible and Non-Convertible
• Registered and Un-Registered or Bearer Bond
• Commodity Backed (Bond is not backed by cash)
20. Cont.…
• It is also known as Treasury Bond.
• It is issued by a national government, generally with
a promise to pay periodic interest payment and to
repay the face value on the maturity date.
• They are usually denominated in the country's own
currency.
• It is safest bond with the lowest interest rate.
21. History
• The first ever bond issued by a national government
was issued by the Bank of England in 1694 to raise
money to fund a war against France.
22. Govt: Bonds Issued by Govt: of Pakistan
• Pakistan Investment Bond (PIB)
• US Special Dollar Bond
• Wapda Bond
• National Saving Bond (Prize Bond) and
• Sukuk
23. Municipal Bond
• A bond issued by state or local government or any of
there agencies. Interest from these bonds is
generally tax-free to residents but in some cases,
interest is federally taxable.
• It is generally used to finance Public Project such as
roads, schools, airports and seaports and
infrastructure related.
• It is secured by specific revenue
• The interest receives holder of municipal bond is
often exclude from income tax.
24. Potential Issuers
• States/Counties
• Cities
• Development Agencies (Capital Development
Authority CDA) (Karachi Development Authority
KDA)
• Other Govt: Agencies WAPDA
25. History of Municipal Bond
• Early days (1800s), Officially the first recorded
municipal bond was a general obligation bond issued
by the City of New York for a canal in 1812.
• The debt was used to finance both urban
improvements and a growing system of free public
education.
26. Municipal Bond Issuance Process
• Fiscal Strengthening and Capital Investment Planning
• Credit Rating
• Project Development
• Financial Structuring
• Financial Structuring
• Authorization of the Prospectus
• Marketing to Investors
• Preparation
• Completion of the Transaction
27. Corporate Bond
• A bond which is issued by a corporation in order to
raise financing for a verity of reasons, such as to
ongoing operations or to expend business.
• The term is usually applied to longer term debt
instrument, with maturity of least one year.
• Corporate debt instrument with maturity shorter
than one year are referred as a commercial paper.
28. Trading
• Corporate bonds trade in decentralized, dealer-
based, over the counter markets.
• Corporate bonds sometimes listed on stock
exchanges those bonds are called Listed bonds.
• Vast majority of trading volume happens O.T.C.
29. Risk Analysis
• Compared to government bonds, corporate bonds
generally have a higher risk.
• Corporate bond holders are stated for this risk by
receiving a higher yield than government bond.
30. Zero-Coupon Bond
• It is also known as an “accrual bond” is a debt
security that doesn't pay interest (coupon) but is
traded at a discount, rendering profit at maturity
when the bond is redeemed for its full face value.
• The maturity dates on zero coupon bonds are usually
long term, with many having initial maturities of at
least 10 years.
• It doesn't make regular interest payments or so-
called coupons, hence term zero-coupon bond.
31. Other Types of Bond
• Personal Bond
• High Yield Bond
• Convertible Bond
• Perpetual Bond
• Bearer Bond (unregistered Bond)
• Registered Bond
• War Bond
32. Cont.….
• Serial Bond
• Revenue Bond
• Sukuk (Islamic Bond)
• Prize Bond
• Development Impact Bond (DIPs)
• Climate Bond
• Covered Bond
• Insurance Bond
33. Personal Bond
• is a written contract in which a person who has been
arrested agrees to appear at all required court dates
and promises to abstain from breaking the law while
the personal bond is in force. Once the contract is
signed, payment of bail is waived, and the arrested
person is released from jail.
34. Setting the Personal Bond Amount
• Personal bond is a amount of money set by a judge or
magistrate, required to be paid or agreed upon prior to
releasing a defendant from jail before his or her court
hearing date.
• This amount is required to be paid to pretrial service
within 7 days of release, or the bond may be revoked.
• The contract for a personal bond includes a provision
that the defendant is
• Responsible for paying the full amount of the bail for
failing to appear at court when required
35. Granting a Personal Bond
• The decision to grant a personal bond is based on several
conditions, including the severity of the offense, a prior
arrest record, employment history, the number of years
spent in the community and the presence of family
nearby.
• If the defendant has a record of previous arrests, an
added consideration will be whether he appeared at all
required court dates.
• A personal bond could be approved, for example, for a
defendant who's arrested for a first-time offence charge
and poses a minimal flight risk.
36. Vacating a Personal Bond
• If the defendant attends all required court hearings
and meets all of the conditions set for her release,
the personal bond will be vacated when the case is
closed.
• Under these circumstances, the bond is clear out
whether the defendant is found innocent or guilty.
37. High Yield Bond or Junk Bond
• A junk bond refers to high-yield or noninvestment-
grade bonds. Junk bonds are fixed-income
instruments that carry a credit rating.
• Junk bonds are so called because of their higher
default risk in relation to investment grade bonds.
• These bonds have a higher risk and higher yield
which attracts to investor.
38. Risks
• Interest rate risk
• Credit risk
• Duration risk
• Repayment of principal risk
39. Convertible Bonds
• It is type of bond that the holder can convert into a
specified number of shares of common stock in the
issuing company or cash of equal value.
• It has the maturity of greater than 10 years.
• It is a Hybrid security with debt and equity-like
features.
• A convertible bond has a coupon rate lower than that
of similar non-convertible debt.
40. History
• It originated in the mid 19th century and was used by
early speculator Jacob Little & Daniel Drew to
counter market concerning.
• It is issued by companies with a low credit rating
41. Advantages of Convertible Bonds
• If Bonds are converted into stocks companies debt
vanishes.
• However, in exchange for the benefit of reduces
interest payments.
• The value of share holders’ equity is reduced due to
the Stock Dilution expected when bond holders
convert their bonds into shares.
42. Perpetual Bond
• It is a bond with no maturity date. Therefore, it may
be treated as equity, not as debt .
• Issue pay coupons on the perpetual bonds forever
and they do not have to redeem the principal.
• Perpetual bond cash flows are, therefore, those of a
perpetuity.
43. Bearer Bond
• It is an certificate issued without a name of its
holder. In other words, the person who has the paper
certificate can claim the value of the bond.
• They are traded like cash.
• Bearer bonds are very risky because they can be lost
or stolen.
• Bearer bond in the event of its lost, theft, or
destruction.
• Relief is possible in the case of US public debt.
44. Registered Bond
• It is a bond whose ownership is recorded by the
issuer, or by a transfer agent.
• Interest payments, and the principal upon maturity
are sent to registered owner.
• It is alternative to a bearer bond.
• Interest is pay only registered person.
45. War Bond
• It is bond issued by government to fund military
operations during war time. This type of bond has
low return rate.
• War bond are often accompanied by appeals to
patriotism and conscience.
46. War Bond History
Name of Country Bond
Austria & Hungry Austrian War Bond (1915) WWI
Canada Victory Bond (1917) WWI
German Lucian Bernhard Bond (WWI)
UK War-Loan To-Day (WWI)
US Liberty Bond (WWI)
47. Serial Bond
• It is a bond that matures in installments over a period
of time.
• Serial bonds (or installment bonds) describes a bond
issue that matures in portions over several different
dates. Instead of facing a large lump-sum principal re-
payment at maturity, an issuer can opt to spread the
principal repayment over several periods.
• Example: Rs. 100,000, 5-years serial bond would
mature in a Rs. 20,000 annuity over a 5-year interval.
• Bond issues consisting of a series of blocks of securities
maturing in sequence the coupon rate can be different.
48. Revenue Bond
• Revenue bond is issued by a (local) government.
• It is a special type of municipal bond distinguish by
its guarantee of repayment.
• Revenue bonds are typically non-recourse, meaning
that in the event of default, the bond holder has no
alternative to other governmental asset or revenues.
49. Purpose
• Revenue bonds may be issued to constant or expand
upon various revenue generating entities including:
• Toll Roads and bridges
• Airports, Seaports
• Power Plants
• Prisons
50. Sukuk (Islamic Bond)
• Sukuk is the plural of “Sakk” which means is stamp.
• Islamic bonds, structured in such a way as to generate
returns to investors without infringing Islamic law (that
prohibits riba or interest).
• A sukuk investor has a common share in the ownership
of the assets linked to the investment although this does
not represent a debt owed to the issuer of bond.
• However, as opposed to conventional bonds, which
merely confer ownership of a debt, Sukuk grants the
investor a share of an asset, along with the
commensurate cash flows and risk.
51. History
• The first officially sukuk wort RM. 125 Million were
issued in Malaysia by Shell MDS.
• In 2000, the government of Sudan issued domestic
sovereign short-term sukuk worth 77m Sudanese
Pounds on the basis of Musharaka.
52. Prize Bond
• It is also known as a Lottery Bond.
• Funds raised are used to offset government
borrowing and are refundable to the bond owner on
demand.
• Interest is returned to bond owners via prizes which
are distributed by means of random selection of
bonds. Prize Bonds are also offered in Pakistan.
53. Cont.…..
• Prize Bonds is gold investment and are bearer type of
security available in the denominations of Rs.200, Rs.750,
Rs.1,500, Rs.7,500, Rs.15,000,Rs.25000 and Rs.40,000.
• These bonds are issued in series. Each series consist of one
less than 1,000,000 bonds.
• No fixed return is paid but prize draws are held on quarterly
basis.
• Prize Bond's Scheme is the only lawful source for poor and
middle class people investment opportunities to become
rich overnight and making their dreams come true Prize
bond offers investment options
Because the Netherlands did not exist at that time, the bonds issued by the city
of Amsterdam are considered their predecessor which later merged into Netherlands government bonds. The average interest rate at that time
fluctuated around 20%.
The name Coupon arose because in the past, paper bond certificates were issued which had coupons attached to them, one for each interest payment.
On due dates the holders would hand in the coupon to a bank in exchange for the interest payment.
The credit quality of the issue refers to the probability that the bond holders will receive the amount promised at the due dates.
For Example: the government is far more secure than corporation or any other bond.
Embedded Options: embedded options that give certain rights to the issuer or bondholder. There are two basic options:
Call Option: this option gives the issuer the right to redeem the outstanding bond issue at specified dates, and at a specified price, prior to maturity.
Put Option: Put option - this option gives the bondholder the right to sell the bond back to the issuer at specified dates, and at a specified price, prior to maturity.
How Does the Bond-Buying Process Begin?
When a corporation or government agency is considering issuing bonds--or stocks, for that matter--it usually contacts an investment bank for advice on the marketplace, the possible issuing price, and other factors. An investment bank is a firm that serves as an intermediary between the organization issuing the securities and the investors who purchase them. The bond issuer itself does not sell the bonds.
Investment bankers often begin assisting the corporation or government agency well before the bonds are actually issued. The organization's relationship with the investment banker may continue after the bonds have been issued, and the investment banker may sit on the corporation's board of directors.
Corporations and government units realize that investment banks possess knowledge and expertise they need to reach investors. Investment bankers generally have an excellent understanding of capital markets, relevant government regulations, and other factors affecting a bond issue.
Many investment bankers also offer broker/dealer services and related financial services.
What is the process for issuing bonds? We will look at that next.
How Do Investment Bankers Issue Bonds?
In acting as an intermediary between the bond issuer and the bond buyer, the investment banker serves as an underwriter for the bonds. When investment bankers underwrite the bonds, they assume the risk of buying the newly issued bonds from the corporation or government unit; they then resell the bonds to the public or to dealers who sell them to the public. The investment bank earns a profit based on the difference between its purchase price and the selling price. This difference is sometimes called the underwriting spread.
When the investment bank works with a client corporation or government unit, it generally also prepares required documents for filing with the Securities and Exchange Commission (SEC). It also helps set a price for the issue and takes the lead in forming and managing an underwriting group--also known as a purchase group or syndicate. This syndicate spreads the risk of the new issue to a larger number of participating investment bankers and improves the likelihood of selling all of the newly issued bonds.
Sometimes the investment banker markets a new issue but does not underwrite it. The investment bank simply acts as a sales agent under a best efforts agreement, promising to do its utmost to market the bonds. The investment bank has the option to buy the bonds and usually purchases only enough bonds to meet buyer demand, receiving a commission on the bonds sold.
After the bond issuer and the investment banker have completed and filed all necessary documents, they can begin to sell the bonds.
How Do Issuers and Investment Bankers Locate Bond Buyers?
Investment bankers generally have a good understanding of where and how to market newly issued bonds. They may decide, for example, that they can successfully market a certain bond through advertisements in the financial press, including The Wall Street Journal and Barron's.
They usually have well-developed investment banking networks and may identify the brokers and sales forces most able to market a particular bond offering. Investment bankers sometimes have established networks with investors who may be interested in the offering; they may encourage the investors to contact brokerage houses, specifying what they want in a bond.
Investment bankers also may sell newly issued bonds through private placements to large, institutional investors like insurance companies or government unit retirement funds. If the bonds are purchased for investment and not for resale, they do not need to be registered with the SEC. A bond that is not registered and that may not be sold in the public marketplace is called a letter bond, or letter security, since the purchaser signs a letter stating that the bonds are for investment purposes and not for resale.
Regardless of the sales channel, most newly issued bonds are sold through investment bankers.
BENEFITS OF INVESTMENT IN BONDS
Although every bond fund has its own risk, one should be able to balance the risks with the overall benefits of investing in funds associated with bonds. These include:
Diversification
‘Never keep all your eggs in one basket’. Diversification means spreading your investments across a broader range of companies as well as industry sectors. This helps in minimizing the risks if the company or sector fails.
Professional Management
Letting the professional money managers to do the heavy lifting for you can save you the hassle of having to research and evaluate the thousands of individual bonds on the market.
Lower Initial Investment Requirements
Lower investment help assist the accessibility to a wide variety of bonds. The best policy is to work with the investment advisor who can determine your fixed-income needs, find a fund that will help meet those needs, and weigh down the risks associated with it.
.
Stands for (over the counter market). Is an electronic stock exchange with the aim of providing an opportunity to small and medium companies to access public funds at low cost.
Example: lets say a zero coupon bond with a Rs. 1000 par value and 10 years to maturity is trading at Rs 600, you would be paying Rs. 600 today for a bond that will be worth Rs, 1000 in 10 years.
Credit Rating or Credit Quality: an estimate of the ability of a person or organization to fulfil their financial commitments, based on previous dealings.
Bearer bonds have been severely curtailed in the US since 19982.
Bearer bonds have historically been the financial of choice for Money Laundering, tax evasion, and canceled transaction in general.
What is 'Money Laundering'
Money laundering is the process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity, originated from a legitimate source.
Definition: A serial bond is a bond issuance where a portion of the total number of bonds are paid off each year. This results in a gradual decline in the total amount of the issuer's debt outstanding. For example, a $1,000,000, ten-year serial bond will have $100,000 of bonds mature once a year for ten years.
A serial bond is designed to support the financing needs of a capital project that delivers a steady stream of funds to pay down the debt over time. For example, a toll road may require initial funding with a bond issuance, after which toll proceeds are used to pay off the bonds over a long period of time. The same situation arises for an apartment complex, where bonds are used to pay for construction of the complex, and the resulting rents are used to pay for the bonds.
Conversely, serial bonds are not suitable when the cash flows expected to be generated by a project funded with the bonds will be irregular, delayed, or uncertain. In such cases, structuring a bond as a serial bond could result in a default rather early in the buy-back period.
The advantage to the issuer of a serial bond is that less interest will be paid over the life of the bonds, since the aggregate amount of cash loaned to the issuer is greatly reduce. The advantage to the investor is the reduced risk of default, since the issuer's repayment liability is constantly declining.
Sukuk is common in Islamic finance and is the Arabic term for financial certificates. It is the equivalent of bonds, which are common in the western world.
Since earning interest is not allowed in Islam, Sukuk bonds are structured to fulfill Islamic law, which prohibits charging and paying interest. If a financial instrument complies with Islamic law, it can be categorized in accordance with its tradability and non-tradability in secondary markets.
Sukuk Example:Sukuk bonds are structured in a manner where the issuer of the Sukuk sells the financial certificate to the investor, who in turn may rent it back to the Sukuk issuer for a prearranged fee. The issuer will also pledge to buy back the Sukuk bond at the same value at a future date. Due to a ban on debt trading under Shariah law, a Sukuk bond must be associated with the cash flow and return of the funding to the purchased asset.
Shell MDS (Malaysia) Sdn. Bhd. (SMDS)
Shell MDS (Malaysia) Sdn. Bhd. (SMDS) is a joint venture of Mitsubishi Corporation, the Royal/Dutch Shell Group of Companies (Shell), state-owned Petroliam Nasional Berhad (Petronas) and the Sarawak State Government. SMDS, which is located in Bintulu in Malaysia's Sarawak State, started operation in 1993 with a yearly production of approximately 500,000 tons. SMDS is the world's first commercial project to employ Gas to Liquids (GTL) technology, which can be used to produce petroleum products, chemical products, wax, and other materials from natural gas. The technology is seen to have huge potential as an effective way for utilizing natural gas. The project uses a process based on Shell's GTL technology. Products produced from natural gas are much more environmental-friendly than other petroleum products, and therefore a higher market-evaluation is expected.