Sterling bonds

Issuers of sterling bonds including Eurobonds and bulldogs. 

EXHIBIT 25.3 Barclays Sterling Bond Index Duration... 

Part Three presents the author s insights into trading, based on his experiences working as a gilt-edged market maker and sterling-bond proprietary trader. The topics covered include implied spot and market zero-coupon yields, yield-curve spread trading, and butterfly spreads. 

A.M. Pennie T.S. Sterling, CanJ-ChemEngrg 36, 82-84 (1958) US Dept of Army Reprint 1142 (1958) (Phlegmatization of fine RDX) 139) B. Zlotucha et al, Characteristics of Poly-styrene-bonded RDX (PB-RDX) , SEAL Tech Rept 2497 (1958) 140) H.W. Koch H.Freiwald, "On the Properties of Hexogen Suspensions in Molten TNT", Rapport No 6/58, Laboratoires de Rech-erches Techniques de Saint-Louis (in German), translation by US Joint Publication Research Service (PA Tech Note FRL-TN-57) 141) R.J. 

Chittick and Sterling 1985). The infra-red (IR) vibrations of silicon-hydrogen bonds were observed, although they were not recognized as such, and also some metastable phenomena which are now being widely studied. However, the significance of this early work was evidently missed by the sponsors of the research and the project was terminated. 

The most common day conventions used for floaters are actual/360 and actual/ 365. The first one is the most popular for euro- and doUar-denominated bonds while for sterling-denominated bonds, the convention is actual/365. 

A bond is a debt capital market instrument issued by a borrower, who is then required to repay to the lender/investor the amount borrowed plus interest, over a specified period of time. Bonds are also known as fixed income instruments, or fixed interest instruments in the sterling markets. Usually bonds are considered to be those debt securities with terms to maturity of over one year. Debt issued with a maturity of less than one year is considered to be money market debt. There are many different types of bonds that can be issued. The most common bond is the conventional (or plain vanilla or bullet) bond. This is a bond paying periodic interest pay-... 

The sterling-denominated Eurobond market has an active long-dated (30 years or more) sector, and this has led to two important differences in documentation compared to the Euro market. Firstly, to provide additional comfort to investors in long maturity paper, the bonds are often secured by charges on the issuers assets. It is worth noting in this connection that the common terminology can be inconsistent. Market... 

GEMMs and market makers of sterling-denominated bonds. 

The repo market has allowed the hedge fund to borrow in sterling at a rate below the cost of unsecured borrowing in the money market (4.95%). The repo market maker is overcollateralised by the difference between the value of the bonds (in ) and the loan proceeds (2%). A rise in USD yields or a fall in the USD exchange rate value will adversely affect the value of the bonds, cansing the market maker to be undercollateralised. 

This same factor can also be used to compute spread risk in markets where there is not enough data to build a detailed credit block. It can also be used in markets where more detailed credit factors are available, but when there is not enough information to expose a bond to the appropriate credit factor. As we will see in what follows, this will be the case when a euro- or sterling-denominated corporate bond is not rated. Based on the observation that bonds with larger spreads are on average more risky, Barra s model assumes the following exposure to the swap factor ... 

At the time of this writing, corporate bonds denominated in currencies others than euro and sterling are only exposed to the local interest factors and if it exists, the swap factor. This swap factor is roughly equivalent to a financial AA spread factor, as the bulk of organizations that engage in swaps are AA-rated financial institutions. The swap model is coarser than the two local credit models discussed in the next section, but it performs adequately because spread changes are highly correlated within markets. 

Exhibit 25.3 shows the average duration of bonds in the sterling market from December 1990 to January 2003, we find that it has increased... 

Due to the youth of the Euro credit market, an accurate comparison with the sterling market is difficult to make, but we can still observe an increased issuance of longer-dated bonds. 

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