A debt market instrument specifically a Note, which mostly matures between 5 years to 10 years is known as a Medium Term Note (MTN). To know more about it, click on the link given below: https://efinancemanagement.com/sources-of-finance/medium-term-note

1. By:-
eFinanceManagement.com
https://efinancemanagement.com/sources-of-finance/medium-term-note
Medium Term Note

2. 1. Introduction
2. Types of Medium-Term Notes
3. Participants in Medium-Term Notes Program
4. Advantages of Medium-Term Notes
5. Reference
Content

3. A debt market instrument specifically a Note, which mostly matures between 5 years to 10 years is known as a Medium
Term Note (MTN). And it is issued by the Companies for a continuous period, with varying maturities ranging from 5
years to 10 years.
MTN gives higher coupon rates in comparison to Short Term Notes and lower coupon rates in comparison to Long
Term Notes.
Medium-Term Notes are mostly issued with two options, i.e. call option (also known as a callable note or redeemable
note) and non-call option.
Introduction

4. 1. US medium-term notes
2. Euro medium term notes
3. Asset-backed medium-term notes
4. Structured medium-term notes
Types of Medium-Term Notes

5. 1. Issuer
2. Guarantor
3. Intermediaries
4. Other bodies
Participants in Medium-Term Note Program

6. • Acts as a continuous source of debt finance for the companies.
• Keeps enough cash flow in the organization and thereby enhances the growth of the company.
• It gives higher coupon rates as compared to Short Term Note.
• Permits the issuing company to register itself under the Securities Exchange Commission (SEC) only once for all of
its issues
• This instrument serves the purpose of all those investors who are unwilling to invest for short or long durations.
• MTN reduces the risk of reinvesting funds at a lower interest rate in a shorter duration
• Medium Term Note allows the investors to select maturity dates according to their time zone.
• MTN helps the company in managing its asset-liability management (ALM).
• Medium Term Note allows the issuing company to get funding in silence.
• MTN allows the investor to conduct a reverse inquiry if the investment product with its required characteristics is not
available in the market.
Advantages of Medium-Term Note

7. Reference
To know more about it, click on the link given below:
https://efinancemanagement.com/sources-of-finance/medium-term-note