Debt market

Financial markets value companies. The cycle of equity markets measured as a multiple of the current EBITDA performance of a company is important, as it influences the value and the timing of exits for financial sponsors. The availability of debt markets is equally important because LBOs require sophisticated debt financing arrangements. Conditions in both equity and debt markets have an impact on private equity investments. 

As it is used as a predictive indicator, the spot yield curve needs to be fitted as accurately as possible. This is an area that has been extensively researched (see McCulloch, 1975 Deacon and Derry, 1994 Schaefer, 1981 Waggoner, 1997 Nelson and Siegel, 1987 Svensson, 1994, 1995 inter alia). Invariably researchers use the government debt market as the basis for modelling the term structure. This is because the government market is the most liquid debt market... 

One common way to distinguish between different sectors of the debt markets is by the maturity of the instruments. The money market is... 

Despite our focus on the public debt markets, banks still provide the bulk of corporate Europe s credit needs. Bank loans to commercial and industrial borrowers in Europe total 3,000 billion, compared to 651 billion of public fixed-rate investment grade debt. 

JPMorgan s SUSI index focuses on the largest (issues size >= 400 million) and most liquid issuances in the European subordinated debt market. The SUSI subindices cover Bank Lower Tier II, Banker Upper Tier II, Bank Tier I, Insurance Subordinated as well as Landesbanks Lower Tier II and Tier I. With the exception of the Landesbanks subindices, all SUSI indices are available in and . The composition of each index is revisited every six months. 

This chapter is an account of trustee and agency services that are required to support proper functioning of the debt capital markets. A distinction will be made between responsibilities of a trustee, and the other services offered by trust banks, known as agency services, to support debt markets structured products. The purpose of this chapter is to give the reader a broad understanding of the work undertaken by trust banks and how these services relate to the structures themselves. It should be noted that while many of these services are offered globally, the focus of this chapter is primarily on the European structured finance market. 

The media report the bond yield level because it is so important to the country s economy—as important as the level of the equity market and more relevant as an indicator of the health and direction of the economy. Because of the size and crucial nature of the debt markets, a large number of market participants, ranging from bond issuers to bond investors and associated intermediaries, are interested in analyzing them. This chapter introduces the building blocks of the analysis. 

Securitization also enables an instimtion to access debt markets its credit rating would otherwise be too low for. The growth in the United States of the credit card banks, such as MBNA International, would have been severely restricted if these firms had not had a market for their securitized debt. 

A comprehensive yet succinct coverage of fixed income debt market instruments, which will be instructive for investors as well as analysts and bankers. ... 

As discussed earlier, retail investors play only a small part in the market for U.S. fixed-income securities. Individual investors represent only 6 percent of the 15 trillion debt market,- the major customers are institutions, like mutual funds, asset managers, regional banks, pension funds, and other large investors. As such, large brokerage firms, while wanting to sell any product they can, do not view individuals as the big spenders—or the preferred customers. 

Total fixed-income debt market = 15.1 trillion... 

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