Class Notes (808,126)
Canada (493,084)
UOIT (1,636)
Business (220)
BUSI 3410U (20)
Bin Chang (14)
Lecture 5

BUSI 3410U Lecture 5: Lecture 5

1 Page
Unlock Document

BUSI 3410U
Bin Chang

Lecture 5: The Bond Market Financial Institutions Bond and Bond Market Debt Instruments Money market (short term) Corporate promissory notes and Tbills o Commercial Paper o Bankers Acceptance Loans Mainly banks but also Trust and Loan companies and insurance companies o Normally shorter term with a single issuer (except syndicated loan market) Syndicated loan large loan in which a group of banks provide funds for a borrower, usually several but without joint liability o Basic interest rate is Prime plus spread Bonds marketable long term loans o Notes , 510 years; bonds thereafter o Usually issued to many lenders and placed through securities firm Issuers GOC (note Canada Savings Bond (CSB) are not really bonds as they are cashable and non transferable) o Provinces and municipalities o Govt agencies (CMHC, Ontario Hydro successor) o Corporations o Nonresidents Maple bond market (A Canadian dollar denominated bond that is sold in Canada by foreign financial institutions and companies) Gives domestic investors, the opportunity to invest in foreign companies without worrying about the effects of currency exchange fluctuations Purchasers mainly institutions o Insurance companies, pension funds, bond funds Composition of the Canadian Bond Market Canada agencies 42.5 Provincial 27.6 Municipal 1.3 Corporations o AAA AA rated 10.2 o A rated 13.5 o BBB rated 4.9 Total Corporations 28.6 Total Index 100 Trustee Trust company acts as a trustee to make sure terms of the bond are upheld o
More Less

Related notes for BUSI 3410U

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.