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A government bond or sovereign bond is a form of bond issued by a government to support public spending. It generally includes a commitment to pay periodic interest,called coupon payments, and to repay the face value on the maturity date.
Currency substitution is the use of a foreign currency in parallel to or instead of a domestic currency.
Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example,the borrower may have to pay interest at a fixed rate once a year and repay the principal amount on maturity. Fixed-income securities can be contrasted with equity securities that create no obligation to pay dividends or any other form of income. Bonds carry a level of legal protections for investors that equity securities do not:in the event of a bankruptcy,bond holders would be repaid after liquidation of assets,whereas shareholders with stock often receive nothing.
China Development Bank is a development bank in the People's Republic of China,led by a governor-level cabinet minister,under the direct jurisdiction of the State Council. As one of three policy banks in China,it is responsible for raising funds for large-scale infrastructure projects,including the Three Gorges Dam and the Shanghai Pudong International Airport. Established by the Policy Banks Law of 1994,the bank is described as the engine that powers the national government's economic development policies.
The bond market is a financial market where participants can issue new debt,known as the primary market,or buy and sell debt securities,known as the secondary market. This is usually in the form of bonds,but it may include notes,bills,and so on for public and private expenditures. The bond market has largely been dominated by the United States,which accounts for about 39% of the market. As of 2021,the size of the bond market is estimated to be at $119 trillion worldwide and $46 trillion for the US market,according to the Securities Industry and Financial Markets Association (SIFMA).
GKO are short-term zero-coupon government bonds issued by the Russian Finance Ministry and trade on the Moscow Inter Bank Currency Exchange (MICEX),as well as on five other currency exchanges connected with the MICEX and located in large regional cities. The last GKO auction was held in February 2004.
Hyundai Capital Services (Korean: 현대캐피탈) is a South Korean provider of consumer financial services ranging from auto-financing,private financing,and corporate financing. The company is a financial service unit of Hyundai Motor Group. Hyundai Capital operates in 12 countries –Korea,the U.S.,the U.K.,China,Germany,Canada,Russia,Brazil,India,Australia,Indonesia,and Singapore.
Woori Bank is a Korean multinational bank headquartered in Seoul. It is one of the four largest domestic banks in South Korea and is showing a strong presence not only in commercial banking but also in corporate finance in the Republic of Korea. It was originally founded in the 19th century but was renamed and merged multiple times until it finally adopted its current name in 2002. Woori Bank is known as the first South Korean bank to support web browsers other than Internet Explorer for online banking in Korea. As of 2020,Woori ranks 95 among the largest banks in the world in terms of total assets with 311,852 billion in USD as of the end of 2019.
A Formosa bond is a bond issued in Taiwan but denominated in a currency other than the New Taiwan Dollar. They are issued by the Taiwan branches of publicly traded overseas financial institutions and to be traded must have a credit rating of BBB or higher.
Financial services in South Korea refers to the services provided in ROK by the finance industry:banks,investment banks,insurance companies,credit card companies,consumer finance companies,government sponsored enterprises,and stock brokerages.
A Panda bond is a Chinese renminbi-denominated bond from a non-Chinese issuer,sold in the People's Republic of China. The first two Panda bonds were issued in October 2005 on the same day by the International Finance Corporation and the Asian Development Bank. Their terms were 1.13 billion yuan of 10-year bonds at a 3.4% yield and 1 billion yuan of 10-year bonds at a 3.34% yield. The Chinese government had been negotiating for several years about implementation details before permitting the sale of such bonds;they had been concerned about the possible effects on their currency peg. Eventually,it was agreed that funds raised from sales of Panda bonds would have to remain in China;issuers would not be permitted to repatriate such funds.
An Arirang bond is a won-denominated bond issued by a foreign entity in South Korea. The name refers to "Arirang," a Korean folk song. The market for Arirang bonds is extremely small,constituting less than 0.2% of corporate bond issuance in South Korea. The Asian Development Bank was the first to issue Arirang bonds,with a 1995 issue of ₩80 billion worth of seven-year bonds.
A Green bond is a fixed-income financial instruments (bond) which is used to fund projects that have positive environmental and/or climate benefits. They follow the Green Bond Principles stated by the International Capital Market Association (ICMA),and the proceeds from the issuance of which are to be used for the pre-specified types of projects.
The Australian government debt is the amount owed by the Australian federal government. The Australian Office of Financial Management,which is part of the Treasury Portfolio,is the agency which manages the government debt and does all the borrowing on behalf of the Australian government. Australian government borrowings are subject to limits and regulation by the Loan Council,unless the borrowing is for defence purposes or is a 'temporary' borrowing. Government debt and borrowings have national macroeconomic implications,and are also used as one of the tools available to the national government in the macroeconomic management of the national economy,enabling the government to create or dampen liquidity in financial markets,with flow on effects on the wider economy.
A samurai bond is a yen-denominated bond issued in Tokyo by non-Japanese companies,and is subject to Japanese regulations. These bonds provide the issuer with an access to Japanese capital,which can be used for local investments or for financing operations outside Japan. Foreign borrowers may want to issue in Samurai market to hedge against foreign currency exchange risk. Another intention may be simultaneously exchanging the issue into another currency,in order to take advantage of lower costs. Lower costs may result from investor preferences that differ across segmented markets or from temporary market conditions that differentially affect the swaps and bond markets.
The United States dollar was established as the world's foremost reserve currency by the Bretton Woods Agreement of 1944. It claimed this status from sterling after the devastation of two world wars and the massive spending of the United Kingdom's gold reserves. Despite all links to gold being severed in 1971,the dollar continues to be the world's foremost reserve currency. Furthermore,the Bretton Woods Agreement also set up the global post-war monetary system by setting up rules,institutions and procedures for conducting international trade and accessing the global capital markets using the US dollar.
Dim sum bonds are bonds issued outside of China but denominated in Chinese renminbi,rather than the local currency. They are named after dim sum,a popular style of cuisine in southern China.
Chinese-issued U.S. dollar bonds are dollar-denominated bond issued by Chinese financial institutions and corporations.
Russia defaulted on part of its foreign currency denominated debt on June 27,2022,its first such default since 1918. Before that,on 2 June,Russia defaulted on the 30-day interest,incorrectly not counting interest for the grace period,but a failure to pay $1.9 million was not sufficient to trigger a cross-default across other instruments,because the minimum threshold is an amount of at least $75 million,according to documents for other Russian eurobonds. The default occurred due to technicalities as the payment in dollars was impossible due to the sanctions by US and EU authorities,but did not mark an actual lack of capability to pay its debts.
References
- ↑ Gwon, Yeong-seok (2006-05-24). "'김치본드' 내달 처음으로 선보인다 (Announcement: first 'Kimchi Bonds' next month)". The Hankyoreh . Retrieved 2007-07-06.
- 1 2 "'Kimchi' bonds for Koreans". The Standard. 2006-05-25. Archived from the original on 2007-09-29. Retrieved 2007-07-06.
- 1 2 "Supplement to MOFE Press Release: 2nd Meeting of the Financial Hub Initiative Committee". Ministry of Finance and Economy. 2006-06-19. Retrieved 2007-07-06.[ permanent dead link ]
- 1 2 "Deutsche Bank Group Profile: Korea" (PDF). Deutsche Bank. October 2006. Archived from the original (PDF) on 2007-05-08. Retrieved 2007-07-06.
- ↑ "SK Shipping prepares kimchi". Jane's Transport Finance. 2007-06-21. Retrieved 2007-07-06.[ permanent dead link ]
- ↑ Kim, Jung-min (2005-04-24). "Woori considers issuing dollar-denominated 'kimchi bond'". Herald Media. Archived from the original on 2004-08-13. Retrieved 2007-07-06.