Comparative Analysis of the Market Depth of Bond Markets in Australia, Austria, Chile, Liechtenstein and Switzerland

1. Presented by: Group 9
Garima Tyagi
Kushal Bhardwaj
Pankaj Rathi
Shashwat Dev
Surbhi Soni
Comparative Analysis of the Debt
Markets in Australia, Austria, Chile,
Liechtenstein and Switzerland

2. Australia’s Financial Market
 Australia has well developed financial markets
across major products, including money, debt,
equities, foreign exchange and derivatives. These
market sectors are not large compared to
equivalent markets in economies such as the
United States (US) or Japan.
 However, trading activity in many Australian
financial market sectors is higher than the size of
the economy might indicate. For example,
Australia's largest market sector is the foreign
exchange market. The Australian dollar is the
seventh most actively traded currency.

3. Australia’s Debt Market
 Debt securities are an obligation by one party to
make payment(s) to another party in the future.
These securities take various forms. However, in
general, they have a fixed maturity date on which
the debt must be repaid, and they pay some form
of interest.
 Participants in the Australian debt market include
issuers of debt (groups that use the market as a
source of funding), and investors in debt (groups
that hold debt securities as assets). Three broad
groups issue debt in the Australian debt market:
a. Commonwealth government,
b. State/Territory governments and
c. Corporates.

4. Share of entities in the debt
market

5. Commonwealth Government
Securities
Commonwealth Government Securities (CGS)
includes all debt issued by the Commonwealth.
The Commonwealth currently uses three debt
instruments:
a. Treasury Fixed Coupon Bonds,
b. Treasury Indexed Bonds and
c. Treasury Notes.

7. Treasury Fixed Coupon Bonds
 Treasury Fixed Coupon Bonds account for
around 80 per cent of CGS outstanding. With
these securities:
 the face value or capital value is repaid at maturity;
 holders receive coupons semiannually; and
 trade is on the basis of yield to maturity.
 Issuance of relatively longer dated securities
reflects the Government's comparative advantage
in borrowing for longer periods. The
Commonwealth is the highest rated issuer in the
country, and all major rating agencies give it the
highest possible rating. This reflects the
Government's capacity to raise taxes to service
debt funding needs.

8. Other types of CGS
 Treasury Indexed Bonds guarantee holders of these
securities a real rate of return. The coupon and capital
for these securities is linked to a measure of inflation.
 Treasury Notes are the third form of CGS the
Government currently issues. Treasury Notes are
short term securities that assist in managing the
Government's within year funding requirement. This
within year funding requirement arises because the
timing of the Commonwealth's revenue does not
exactly match the expenditure profile.
 The Government also uses short term deposits to
assist in managing the within year funding
requirement. When the Commonwealth has surplus
funds, it places these funds on deposit with the
Reserve Bank of Australia (RBA). The deposits earn a
rate of return broadly similar to interest paid on
Treasury Notes.

9. Investors in CGS
 Banks and financial intermediaries hold around 10
per cent of outstanding CGS for purposes including
meeting prudential requirements, holding an inventory
of stock to assist trading, and hedging market risks
associated with various transactions.
 Pension funds hold around 20 per cent of
outstanding CGS as a low risk long term Asset to
match against their long term liabilities.
 Similarly, Insurance companies hold around 20 per
cent to invest premiums in long term assets to match
the likely maturity of their policies.
 The RBA has historically held around 15 per cent of
outstanding CGS to facilitate its open market
operations to implement monetary policy and
contribute to financial system stability.

10. State and Territory Government
bonds
 State and Territory government bonds account for 31
per cent, of total fixed coupon bonds outstanding. The
dominant issuers are New South Wales, Victoria and
Queensland.
 In each State and Territory, a central borrowing
authority (CBA) borrows on behalf of relevant
government public sector authorities and entities.
Centralizing the funding needs of these borrowers
provides a more efficient source of funding than if
each entity individually sourced funds.
 CBAs use a range of funding instruments but fixed
coupon bonds tend to be the primary security issued.
The combination of all State and Territory bonds
outstanding broadly matches the maturity profile of
outstanding Commonwealth bonds.

11. Corporate Bonds
 The volume of fixed coupon corporate bonds outstanding
was 36 per cent of total fixed coupon bonds outstanding at
end June 2002 (Reserve Bank of Australia, 2002). Around
150 nongovernment securities are included in the
(AusBIG) Index (Salomon Smith Barney, 2002).
 Financials and nonresidents issued around two-thirds of
corporate bonds outstanding.
 A growing number of nonfinancial corporations are issuing
bonds to take advantage of investors' demand for higher
return debt instruments and to diversify their funding away
from bank loans and short-term debt.
 The maturity profile of outstanding corporate bonds tends
to be heavily concentrated in bonds with less than five
years to maturity.
 In addition to the fixed coupon bonds issued by the
corporate sector, corporates also issue floating rate
securitised debt.

12. Issuers of Corporate Bonds

13. Debt Issuance Trends

14. The Austrian Debt Market: An Overview
 Traditionally the national economy in Austria was mostly
financed by the credit market. During the last years
financing via bonds and shares has played an increasing role
especially for companies.
 As measured by its volume, the Austrian bond market plays
a bigger role than the Austrian equity market. With regard to
the debt securities of Austrian issuers, The total market
volume outstanding of debt securities amounts to EUR
486,108 billion as of February 2015. At present, 3,952 debt
securities are admitted to trading at the VSE.
 The Austrian bond market represents a share of less than 0,8
% of the overall world bond market. Thus, it may not be
compared to the markets in the US or Germany, which make
up 34 % (US) and 5 % (Germany), respectively, of the total
amount outstanding.

15. Issuers
 The most important issuer of Euro debt securities
in the market is the Republic of Austria, amounting
to 40.2 % of the total market volume outstanding.
Austrian government bonds having a AAA-rating
are representing the most liquid market issues.
 Monetary financial institutions account for 48.4 %
of the total market volume outstanding of Euro
debt securities.
 The remaining 1 1 .4 % account for corporate
bonds.

16. Types of Securities
The following bonds are mainly issued:
 Government bonds
 Corporate bonds
 Mortgage bonds/Covered bonds
Bank/issued bonds & government bonds are
most popular.
Corporate bond market is relatively
underdeveloped

17. Contd.
Government bonds pay annual fixed interest rates. The bonds
are in bullet form, early redemption or redemption in
installments is not foreseen.
Government bonds represent the far most liquid issues in the
Austrian bond market. Due to increased reopenings in recent
years the average outstanding volume of bonds doubled in the
last 7 years and reached almost Euro 10 billions per end 2014.
An overwhelming majority of government bonds is issued via
the auction procedure. In March 1999, the Euro-Medium-Term-
Note (EMTN) Program for international issues under English
law and the Austrian Treasury Bill (ATB) Program for the
launch of short-term issues with maturities up to one year were
established. Especially for private investors within the EU, the
issuer directly offers ‘Bundesschätze’ with different maturities
via the internet.

18. Contd.
 Other types of bonds include floating rate notes with
the interest rate adjusted to money market rates
(mainly EURIBOR). Adjustment periods vary from
three months to one year. Issuers are almost
exclusively banks.
 Covered bonds issued by banks under a separate
legislative basis (Mortgage Bank Act, Act on Covered
Bond Issuance) account for 19 % of the total
outstanding volume of fixed income securities issued
by banks.

19. Contd.
 On the corporate side, particularly bonds
with small denomination that also attract
private investors (retail issues) have been
seen in the market. Convertible bonds and
bonds with warrants traditionally play a less
important role in Austria. However, hybrid
bonds seem to be on the rise (for example,
the EUR150 million hybrid bond issued by
Constantia Flexibles Group in 2013).

20. Main debt markets/exchanges
 The main market for debt securities is the
Vienna Stock Exchange (VSE), the only
stock exchange in Austria.
 Debt securities can be admitted to trading on
one of the two regulated markets (that is, the
Official Market (Amtlicher Handel) and the
Second Regulated Market (Geregelter
Freiverkehr)) and the Third Market, which
is operated as a multilateral trading facility
(MTF).

21. Regulatory bodies
The main regulatory bodies for equity markets in Austria are
the:
Financial Market Authority (FMA). The FMA supervises
activities to ensure that trading in listed securities complies
with:
 legal requirements;
 principles of fairness and transparency; and
 legal and formal requirements regarding prospectuses on the
public sale of securities.
Vienna Stock Exchange (VSE). The regulatory
responsibilities of the VSE include:
 deciding on the admission of securities to listing at the stock
exchange; and
 controlling compliance with VSE rules.

22. Credit Rating of Austrian Bond Markets
 As of 2014, yields and credit-default swaps on Austrian bonds have
fallen significantly, as as it’s less likely the country will have to support
other euro area countries or Austrian banks; and as plans for fiscal
consolidation and banking consolidation were set out.
 Moody’s cut Austria’s rating outlook to negative two years ago, citing
risks for government support for its banking sector. Standard & Poor’s
Rating Services cut its rating to AA+ from AAA in 2012.
 However, In 2014, Moody’s restored its rating from negative to stable.
Similarly, S&P changed Slovenia’s credit rating outlook from negative to
stable.
 However, Fitch ratings firm, which lowered Austria’s ratings by one
notch to double-A-plus, said the general government debt ratio is
expected to peak around 89% of gross domestic product this year, higher
than all sovereigns in the triple-A category, except for the U.S. and in
line with the ratio in the U.K.

23. Impact of Financial Crisis
 The pre-crisis boom, driven by easy access to external funding
and excessive risk taking by banks and businesses, has led to a
protracted bust, which is compounded by domestic structural
weaknesses and the European debt crisis.
 With high credits in construction sector, Austria faced a housing
bubble.
 Most affected were the banks, the largest of which are owned by
the Austrian government. About 20% of loans on average are
non-performing.
 State-owned banks had around 7 billion euros of bad loans, equal
to about 20% of GDP.
 In the course of the sovereign debt crisis in the euro area
increased inflows of financial funds mainly to Germany, but also
to Austria take place. As a result Austrian government bond yield
levels reached a historical low

24. Chile’s economic framework
 Chile’s economic framework includes an independent central
bank, whose monetary policy is carried out based on inflation
targets and a floating exchange rate. Chile’s banking system,
based on a sound regulatory framework, also helps to reduce
domestic economic volatility, with Chilean banks continuing to
grow while maintaining asset quality and adequate
capitalization levels in spite of the global financial crisis.
 Chile’s economic reforms have focused on the key areas of the
private pension system, free trade, and the liberalization of
financial markets.
 In the early 80s Chile became the first country in the world to
phase out a strapped pay-as-you-go system and replace it with
an individually funded private pension system run by
competing, private fund managers. In 2008 significant reforms
were passed, including:
 • The creation of a new and better system of government
pension subsidies;
• The inclusion of self-employed workers in the system;

25.  Chile was the Latin American country with the
highest position in the digital economy ranking
2010, according to The Economist Intelligence
Unit, ranking 30. The study measures the
development and advancement of ICT –
Information and Communications Technology–,
considering both connectivity and use.

26. Chile ‘s Credit Rating : Low and
Behold
 In February 2014, Fitch upgraded Chile's credit rating to
A+ from A with stable outlook because features of Chilean
economy “have allowed Chile to remain very resilient
despite the two severe shocks emanating from the global
credit crisis and the 2010 devastating earthquake”.
 In December 2014, Moody's upgraded Chile's credit rating
to Aa3 from A1 with stable outlook, to reflect the resilience
of the economy to external shocks, including the 2012
earthquake. In addition, it considered the solid fiscal
position and the favorable debt profile.
 In December 2014, Standard and Poor’s upgraded Chile’s
credit rating to AA- with stable outlook due to the resilience
of its economy. This upgrade solidifies Chile´s position as
Latin America´s highest rated nation and puts its credit
worthiness on par with Japan´s and Taiwan´s.

27. Corporate bond market

28.  Chile’s enviable political stability, tradition of
market openness and economic good
housekeeping, would, you might think, make it
solidly attractive enough to investors in an
emerging world full of thrills but many potential
spills.
 But in fact, foreign investors demand a premium
to invest in debt in Chile because of more
restrictive domestic rules than those governing
intenational bonds.
 Chile’s 2020 peso bonds sold to foreign investors
yield some 4.4 per cent currently, compared with
5.32 per cent for peso bonds sold domestically –

29.  Issuance of Chilean global bonds reached USD
7.4bn in 2010. Chilean government issued USD
1.5bn in global bonds, including COP 272.3m of
global peso bonds. Chilean municipal sector sold
USD 5.9bn of eurobonds in international capital
market in 2010.
During the first three quarters of 2014 flow of
global bonds from Chile totaled USD 3bn.

30. Liechtenstein: The Basic Premise of Financial
Markets-
 As we know, a market is where buyers and sellers meet to exchange
goods, services, money, or anything of value. In a financial market,
the buyers are investors, or lenders: the sellers are issuers, or
borrowers. An investor / lender is an individual, company, government,
or any entity that owns more funds than it can use.
An issuer / borrower is an entity that has a need for capital. Each
investor and issuer is active in a market that meets its needs. Needs
are based on many factors, including a time horizon (short- or longterm),
a cost / return preference, and type of capital (debt or equity).
 The third group of participants in the marketplace includes financial
intermediaries called brokers and dealers. Brokers facilitate the
buying and selling process by matching investors and issuers
according to their needs. Dealers purchase securities from issuers and
sell them to investors. Brokers and dealers may be referred to as
investment bankers. Investment banking firms specialize in the
financial markets.

31. What is a Security?
 Security is a generic term that refers to a debt or equity IOU issued by
a borrower or issuer.
- Debt security or bond – an IOU promising periodic payments
of interest and/or principal from a claim on the issuer's
earnings
- Equity or stock – an IOU promising a share in the ownership
and profits of the issuer

32.  Types of Financial Markets
 There are two general classifications of financial markets:
 · Money markets
 · Capital markets
 Money Markets
 Money markets trade short-term, marketable, liquid, low-risk
debt securities. These securities are often called "cash equivalents"
because of their safety and liquidity. The liquidity of a market refers to
the ease with which an investor can sell securities and receive cash. A
market with many active investors and few ownership regulations
usually is a liquid market; a market with relatively few investors, only a
few securities, and many regulations concerning security ownership is
probably less liquid.

33.  Capital Markets
 Capital markets trade in longer-term, more risky securities. There
are three general subsets of capital markets: bond (or debt) markets,
equity markets, and derivative markets. Today, we will discuss
debt markets in more detail and will have a cursory glance at equity markets and
derivative markets
 Debt markets specialize in the buying and selling of debt securities. To
illustrate how debt markets look, we will analyze a short example.
Example
 Suppose that HT Manufacturing Company needs new equipment for its
operations. Most companies try to match assets and liabilities
according to maturity (time left before the item is no longer useful).
The company expects the new equipment to have a useful life of about 10 years
and, therefore, after consulting with its financial advisors, HT Manufacturing
decides to issue 10-year bonds to pay for the equipment. HT Manufacturing
consults with investment bankers to find out what types of bonds investors are
buying and to decide what interest rate the bonds will pay. The object is to make
them attractive to investors, yet cost-efficient for HT Manufacturing.

34.  After completing all of the details, HT Manufacturing issues the
bonds to investors using two methods.
1) The investment banks use their brokers to find buyers for the
bonds, and HT Manufacturing sells the bonds directly to the
investors.
2) The investment banks also act as dealers by buying some of the
bonds themselves, then selling them to investors.
The original issue of bonds (or bills, or any other debt security) is
called the primary market issue. A secondary market also exists
where debt securities are bought and sold by investors. For example,
suppose an investor who bought HT Manufacturing bonds one year ago
has a change in investment plans and no longer needs 10-year bonds.
S/he can sell the bonds in the secondary market (usually with the
assistance of a broker) to another investor who wants 10-year bonds.
Because this transaction has no effect on HT Manufacturing's finances
or operations, it is considered a secondary market transaction.

35.  Equity markets, also called stock markets, specialize in the buying and
selling of equity securities (stocks) of companies. As in the debt
markets, the equity markets have a primary and secondary market.
 The primary market is where companies originally issue stock in their
companies, a process known as an initial public offering — or "taking
the company public." Investment bankers advise a company on the
process and can also act as brokers and dealers for new stock issues.
 The secondary market is where investors buy and sell stocks at prices
that reflect the investors' collective view of the future prospects of
each individual firm.
 Derivative Markets
A derivative instrument is a security that derives its value from an
underlying asset, including financial assets such as stocks and bonds
or other assets such as commodities and precious metals. Derivative
instruments include future and forward contracts and options. These
instruments are bought and sold in the market by investors needing to
hedge risk exposure.

36. The Structure of Liechtenstein Debt Market

37. Market Participants In the Debt Market-
1. Central Governments, raising money through bond issuances, to fund budgetary
deficits and other short and long term funding requirements.
2. Reserve Bank of Liechtenstein, as investment banker to the government, raises
funds for the government through bond and t-bill issues, and also participates in
the market through open-market operations, in the course of conduct of monetary
policy. The RBI regulates the bank rates and repo rates and uses these rates as
tools of its monetary policy. Changes in these benchmark rates directly impact
debt markets and all participants in the market.
3. Primary Dealers, who are market intermediaries appointed by the Reserve Bank
of Liechtenstein who underwrite and make market in government securities, and
have access to the call markets and repo markets for funds.
4. State Governments, municipalities and local bodies, which issue securities in the
debt markets to fund their developmental projects, as well as to finance their
budgetary deficits.
5. Public Sector Units are large issuers of debt securities, for raising funds to meet
the long term and working capital needs. These corporations are also investors in
bonds issued in the debt markets.
6. Corporate treasuries issue short and long term paper to meet the financial
requirements of the corporate sector. They are also investors in debt securities
issued in the debt market.
(Continue…)

38. 7. Public Sector Financial Institutions regularly access debt markets with
bonds for funding their financing requirements and working capital
needs. They also invest in bonds issued by other entities in the debt
markets.
8. Banks are the largest investors in the debt markets, particularly the
treasury bond and bill markets. They have a statutory requirement to hold
a certain percentage of their deposits (currently the mandatory
requirement is 25% of deposits) in approved securities (all government
bonds qualify) to satisfy the statutory liquidity requirements. Banks are
very large participants in the call money and overnight markets. They are
arrangers of commercial paper issues of corporates. They are also active
in the inter-bank term markets and repo markets for their short term
funding requirements. Banks also issue CDs and bonds in the debt
markets.
9. Mutual Funds have emerged as another important player in the debt
markets, owing primarily to the growing number of bond funds that have
mobilised significant amounts from the investors. Most mutual funds also
have specialised bond funds such as gilt funds and liquid funds.
(Continue…)

39. Mutual Funds are not permitted to borrow funds, except for very short-term liquidity
requirements. Therefore, they participate in the debt markets pre-dominantly as
investors, and trade on their portfolios quite regularly.
10. Foreign Institutional Investors FIIs can invest in Government Securities upto
US $ 5 billion and in Coporate Debt upto US $ 15 billion.
11. Provident Funds are large investors in the bond markets, as the prudential
regulations governing the deployment of the funds they mobilise, mandate
investments pre-dominantly in treasury and PSU bonds. They are, however, not
very active traders in their portfolio, as they are not permitted to sell their holdings,
unless they have a funding requirement that cannot be met through regular accruals
and contributions.
12. Charitable Institutions, Trusts and Societies are also large investors in the debt
markets. They are, however, governed by their rules and byelaws with respect to
the kind of bonds they can buy and the manner in which they can trade on their debt
portfolios.

40. Instruments
• Long term instruments
• Government of Liechtenstein
dated securities (GOISECs)
• Inflation linked bonds
• Zero coupon bonds
• State government securities
(state loans)
• Public Sector Undertaking Bonds
(PSU Bonds)
• Corporate debentures
• Bonds of Public Financial
Institutions (PFIs)
• Short term instruments
• Call/Notice Money (1-14 days)
• Term Money – FDs (upto 1 year)
• Repo (1-14 days)- 1 yr
• CBLO (1 day to 3 months)-(Collateral
Borrowing &Lending Obligation)
• Treasury Bills (91 day, 182 and 365 day)
• Fixed deposit
• Certificates of Deposits (upto 1 year)
• Commercial Paper (upto 1 year)
• Bills Rediscounting schemes (upto 6
months)

41. Instruments
• Short term instruments
• Call/Notice Money (1-14 days)
• Term Money – FDs (upto 1 year)
• Repo (1-14 days)- 1 yr
• CBLO (1 day to 3 months)-(Collateral Borrowing &Lending Obligation)
• Treasury Bills (91 day, 182 and 365 day)
• Fixed deposit
• Certificates of Deposits (upto 1 year)
• Commercial Paper (upto 1 year)
• Bills Rediscounting schemes (upto 6 months)

42. Money Market
Call / Notice Money
• It is an important segment of the Liechtenstein money market. In this
market, banks and primary dealers borrow and lend funds to each other on
unsecured basis.
• If the period is more than 1 day and up to 14 days it is called “notice
money”.
• Money lent for 15 days to 1 year is called “term money”.
• No brokers. Settlement is done between the participants through the current
accounts maintained with the RBI.
• In general, the call money rate, referred to as the overnight MIBOR.

43. Debt Market in Switzerland: The
Regulator
 Regulatory supervision in Switzerland is undertaken
by:
 The Swiss Financial Market Supervisory Authority
(FINMA), which is the regulatory body established by
law.
 A group of private self-regulatory bodies that are in turn
licensed and supervised by the FINMA.
The most important licensed self-regulatory body with
regard to debt markets and exchanges is the SIX Swiss
Exchange Ltd (SIX) Regulatory Board. The SIX
Regulatory Board supervises and enforces compliance
with the SIX Listing Rules.
 The issuance or placement of debt securities (other
than the issuance of units or shares in collective
investment schemes) is not subject to registration or
authorisation by FINMA or any other regulatory

44. Swiss Debt Markets: An
Overview
 The main debt securities exchange in Switzerland
is the SIX Swiss Exchange Ltd (SIX) located in
Zurich.
 The other securities exchange is the BX Berne
eXchange located in Berne, which is
comparatively small and is seldom used for the
listing of debt securities.
 All debt securities that are issued by Swiss and
foreign issuers and that are eligible for listing on
the SIX are listed on the bond standard of the
SIX.
 A separate segment called "International Bonds
not listed on the SIX Swiss Exchange" has been
created for the trading of international bonds that

45. Swiss Debt Markets: An
Overview
 Admission to trading enables the trade of international
debt securities issued by a foreign issuer,
denominated in a currency other than Swiss Francs
and with a primary listing on an exchange (other than
the SIX) recognised by the SIX Regulatory Board.
Recognised stock exchanges are those which are
members of the Federation of European Securities
Exchanges (FESE) or the World Federation of
Exchanges (WFE). Under certain circumstances,
unlisted or debt securities not listed on a recognised
exchange may still be admitted to trading in the
International Bonds segment.
 As at 31 July 2014, a little over 1,600 bonds have
been listed on the SIX and about 35,000 bonds were
admitted to trading on the segment "International
Bonds not listed on the SIX Swiss Exchange".

46. Debt Instruments
Bonds listed on SIX
Recognized
International Bonds

47. Switzerland: 5-Year and 10-Year Yields
(%)

48. Types of Debt Securities issued in
Switzerland:-
 Straight bonds (fixed-rate bonds).
 Floating-rate bonds.
 Zero-coupon bonds (zero bonds).
 Dual currency convertible bonds.
 Subordinated bonds.
 Convertible bonds.
 Loan participation notes

49. Types of Debt Securities issued in
Switzerland:-
 Bonds and notes are often issued through an
international or (less commonly) a domestic
European Medium Term Note (EMTN)
programme, often placed within the Swiss private
banking sector.
 No different structures are used for debt
securities issued to the public than for debt
securities issued to professional investors
(institutional investors). The denomination of the
security may be higher if professional investors
are targeted.

50. Effect of the Euro Crisis on the Swiss
Bond Market:-
 The Swiss debt-to-GDP ratio suffered during the
2008 crisis, but it rose from 40 per cent to a
comparatively modest 52 per cent whilst the
average ratio of Switzerland’s European peers
climbed to around 80 per cent.
 Overall, CHF bond issuance in 2010 was at a
similar level to that seen in previous years.
However, there were differences in the extent to
which the capital market was tapped by Swiss
and foreign borrowers. On the one hand, there
was no slump in CHF bond issuance by domestic
borrowers during the crisis, i.e. the Swiss bond
market was never closed. On the other, foreign
borrowers did not rotate their portfolios in favor of
the CHF bond market.

51.  Total issuance by Swiss borrowers in 2010 came
to CHF 38 billion, around 50% above the level
recorded in the crisis years from 2007 to 2009
and a third higher than the pre-crisis average.
 The picture is different for foreign borrowers.
Foreign issuance hit new highs in 2009 but then
fell back sharply in 2010.
Effect of the Euro Crisis on the Swiss
Bond Market:-

54. Comparing the Depth of Bond
Markets in these Jurisdictions:-
 As per the Corporate Bond Market Activity Rankings,
for the years 2004, 2007 and 2013: Switzerland ranks
above the other countries. The same can be seen in
the following chart.
 Switzerland at Rank 8, 6 and 7 in 2004, 2007 and
2013 respectively.
 Australia at Rank 11, 28 and 11 in 2004, 2007 and
2013 respectively.
 Austria at Rank 17, 15 and 46 in 2004, 2007 and
2013 respectively.
 Chile at Rank 32, 42 and 15 in 2004, 2007 and 2013
respectively.
 (Source: Dealogic, IMF available at: <
http://www.iosco.org/research/pdf/swp/SW4-Corporate-Bond-
Markets-Vol-1-A-global-perspective.pdf >)
 (Information regarding Liechtenstein not available.)

55. Corporate Bond Market Activity
Rankings (based on % of GDP)
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
2004 2007 2013
Switzerland
Australia
Austria
Chile

56. Thank You!