Eurobond (Euromarkt bond)
Euro bonds are bonds medium and long term of that for the international capital markets (Euro market) placed to and from another country emits be than the country from which the currency comes in which they are placed. The name Eurobond has no connection with the European common currency, the euro .
The issue is usually in the form of bearer bonds by international bank consortia; the dominant bond currencies are US $, yen, Swiss francs, pounds sterling and euros. Debtors are private companies with high credit ratings, states and the like. a. public bodies and supranational institutions.
The Eurobonds include both conventional and floating rate bonds , zero coupon bonds , dual currency bonds and convertible bonds .
The introduction of Eurobonds can be traced back in part to the 1963 US Interest Equalization Tax (IET), which was designed to discourage US investors from investing in foreign bonds by imposing a withholding tax on foreign interest income . The comparatively low registration requirements as well as the possibility of financing projects in the currency in which they are implemented and thus reducing the currency risk have proven to be advantageous for the issuers, mostly large multinational companies such as McDonald’s , Nestlé or Volkswagen . The first Eurobond, which was listed on the Luxembourg Stock Exchange in 1963 , was a bond with an issue volume of US $ 15 million and a fifteen-year term from the Autostrada (Concessioni e Construzioni Autostrade SpA) to finance the Italian motorway network .
Individual evidence
- ^ A b Jeff Madura: International Financial Management , 2008, South Western Educational Publishing, ISBN 978-0324568202 , pp. 64 ff.
- ^ Jeff Madura: Financial Markets and Institutions , 2007, Cengage Learning, ISBN 978-0324568226 , p. 163
- ^ Moorad Choudhry: An Introduction to Bond Markets , 2010, Wiley, 4th edition, ISBN 978-0470687246 , pp. 152 ff.