WELCOME

EVERYBODY
The
International
Bond
Market
(Eurobond)
 PRESENTED BY
“LUCKY CHARMS”
Name ID
Md. Arifur Rahman 1603410109055
Imran Mahmud 1603410109073
Jubayda Khanam 1603410109132
Shahariar Islam 1603410109145
 CONTENTS
• Chapter 1- Introduction
• Chapter 2- Review of Related Literature
• Chapter 3- Methodology
• Chapter 4- Data Presentation & Analysis
• Chapter 5- Conclusion
 CHAPTER 1

Introduction
 INTRODUCTION
• Defined as bonds which are
issued, and largely sold, outside
the domestic market of the
currency in which they are
denominated.
• Distinct from domestic and
foreign bonds.
• Has had a fantastic growth
during the past 30 years.
 BACKGROUND OF THE STUDY
• In June 1963, the first offshore bond issue denominated in
U.S. dollars was launched.
• It had a marketplace in London.
• The U.K. authorities allowed the market to develop without
regulations or restrictions. London became, and remains
today, the principal center for new issues and the trading of
USD denominated Eurobonds.
• The establishment in 1969 of the Association of International
Bond Dealers (AIBD) provided a forum for improving the
design of the market.
 PURPOSE OF THE STUDY
• Know about the international bond market.
• Domestic Bonds, Foreign Bonds and Eurobonds.
• To know about the procedures of issuance of bonds.
• Advantages and Disadvantages for companies and customers
related with Eurobond.
 SIGNIFICANCE OF THE
STUDY

• Knowing the key features about the

international bond market specially
Eurobond market.
• Will help anyone later who want to
work on this topic.
• Will help new investors and borrowers
who wants to enter into the market.
 CHAPTER 2

Review of Related
Literature
 REVIEW OF RELATED
LITERATURE
 Bond market has largely been dominated by the United States.
 Brigham & Houston said It is a financial market where participants
can issue new debt or buy and sell debt.
 Bond Market is also known as debt market or credit market.
 According to Needham & Dransfield Its primary goal is to provide
a mechanism.
 CONTINUE….
 Saunders & Cornet said that-Bond are used to transfer excess
fund from individuals units to corporations and government
units.
 Obstfeld & Krugman noted and opted an important part of the
bond market which is the government bond market
 CHAPTER 3

Methodology
 DESIGN OF THE STUDY
• A Qualitative approach was followed as a fixed
design that organizes a detailed method of data
collection and analysis.
• A descriptive survey design also followed to
provides an accurate portrayal or account of the
characteristics.
 AREA OF THE STUDY
Whole study have to prepared from home because
of the pandemic situation of COVID19 through
different secondary sources by the help of internet
and the information related to international area
specially European continent.
 INSTRUMENT FOR DATA
COLLECTION

Published
Journals Documents Reports Newspaper
Source
 METHOD OF DATA
ANALYSIS
• Whole study was analyzed, summarized,
and presented by following the
qualitative data analysis.
 CHAPTER 4

Data Presentation and

Analysis
 BOND MARKET
• A financial market where participants buy and sell
debt securities, usually in the form of bonds.
• The bond market primarily includes:- Government-
issued-securities and Corporate debt securities
 DOMESTIC FOREIGN EUROBOND
BOND BOND

A domestic bond is an A foreign bond is a bond A debt instrument

obligation of a domestic issued in a domestic that's denominated in a
issuer, denominated in market by a foreign entity currency other than the
domestic currency, and in the domestic market's home currency of the
sold and traded in the currency as a means of country or market in
domestic market. raising capital which it is issued
 EUROBOND ISSUE PROCEDURE
Eurobond issued typically, financial institutions, such as
investment banks, issue bonds on behalf of the borrower. Besides
this, Eurobonds are issued by many institutions, such as:
• Corporations
• Governments
• Syndicates
 FINDINGS
Advantages for Companies Disadvantages for Companies

a. Large amounts There are issue costs to take into

b. Freedom and Flexibility account if the debt is not
matched against a foreign
c. Lower cost of issue currency asset, the Eurobond
d. Lower interest cost issuing firm may be open to
e. Longer maturities foreign exchange risk.
 Advantages for Investors Disadvantages for Investors

▪ Tax free income ➢ Investing in a Eurobond is not a

good idea for investors who may
▪ Low Risk investment
need a repayment of the
▪ Convertible to Equity investment at short notice.
▪ Liquid investment ➢ There is always the risk of the
issuing company going under and
the maturity value of the Eurobond
not being paid.
 CHAPTER 5

Conclusion
 CONCLUSION
• Eurobonds are issued in international markets and
denominated by the currency of different countries.
• Companies can venture and expand to new region
in the market but might not be able to take credit in
the new region so they will issue bond which is
dominated by the country’s currency.
• Eurobonds allows companies to be benefited from
lower borrowing costs.
 RECOMMENDATIONS
As we said that we did not use any primary data that’s
why we highly recommend that future researcher or
whoever read or use this paper for their further work, do
analyze the data once again and we specially suggest and
encourage for the fieldwork if the situation is in hand.
 LIMITATIONS OF THE STUDY
• Lack of detailed and proper information
• Inexperience and time constraints
• Secondary data might not be reliable or accurate
• Recent data was unavailable
• Covering various aspects might lead to
inaccuracies.
 REFERENCES
• Ahuja, & D. (2012). “Modern economics”.
• Brigham, E., & Houston, J. (2009). Fundamentals of financial management (concise 6th ed.).
• Eggertsson, G., & Krugman, P. (2012). Debt, deleveraging, and the liquidity trap: A Fisher-Minsky-
Koo
• approach.
• Needham, D., & Dransfield, R. (1992). ”Business and Finance for working in organizations, bath press
• LTD, Bath, Heinemann Education. Rank.
• Obstfeld, M., & Krugman, P. R. (1985). Floating Exchange Rates: Experience and Prospects.
• Saunders, A., & Cornet, M. (2012). Financial markets and institutions.
• https://www.tutorialspoint.com/international_finance/international_bond_markets.htm
• https://www.investopedia.com/terms/e/eurobond.asp
• https://www.bis.org/publ/econ32.pdf
• https://en.wikipedia.org/wiki/Bond_market
 The END.
Thank You.