1. Fall-02 http://pluto.mscc.huji.ac.il/~mswiener/zvi.html EMBAF Zvi Wiener Based on Chapter 9 in Fabozzi Bond Markets, Analysis and Strategies Non-US Bonds

2. Zvi WienerFabozzi Ch 9 slide 2 Non-US Bonds national bond markets domestic market Foreign market Yankee USA Samurai Japan bulldog UK Rembrandt Holland matador Spain

3. Zvi WienerFabozzi Ch 9 slide 3 International bond market Eurobond and Euroyen markets Global bond - simultaneous offering Typically registered in Luxembourg, London or Zurich, but traded OTC. Supranationals - IBRD, World Bank, etc.

4. Zvi WienerFabozzi Ch 9 slide 4 Eurobond market Dual currency bonds (coupon in one currency, principal in another). Option currency bond one side can choose the currency. Convertible bonds with warrants - can be converted into another asset. Equity, debt, gold or currency warrant.

5. Zvi WienerFabozzi Ch 9 slide 5 Eurobond market Floating Rate Notes = FRN based on LIBOR or LIBID many are collared some are perpetual

6. Zvi WienerFabozzi Ch 9 slide 6 Comparing Yields bond equivalent yield of Eurodollar bond =2[(1+yield to maturity) 0.5 -1] for example: A Eurodollar bond with 10% yield has the bond equivalent yield of 2[1.10 0.5 -1] = 9.762%

7. Zvi WienerFabozzi Ch 9 slide 7 Japanese Government Bonds JGB short term Treasury bills medium term bonds long term bonds super long term bonds (20 years)

8. Zvi WienerFabozzi Ch 9 slide 8 German Government Bonds U-Schatze discount paper up to 2 years Kassens = federal government notes (2-6 y.) OBLEs = 5 year federal government notes Bunds = federal government bonds (6-30 y.) all coupon payments are annual

9. Zvi WienerFabozzi Ch 9 slide 9 UK Government Bonds Gilts straights = bullet bonds (some callable) convertibles (option to holder to convert to longer gilts) index linked low coupon 2-2.5% irredeemable (perpetual)

10. Zvi WienerFabozzi Ch 9 slide 10 Brady Bonds Argentina, Brazil, Costa Rica, Dominican Republic, Ecuador, Mexico, Uruguay, Venezuela, Bulgaria, Jordan, Nigeria, Philippines, Poland. Partially collateralized by US government securities

11. Zvi WienerFabozzi Ch 9 slide 11 Internet sites www.federalreserve.gov/releases www.tradeweb.com www.bondclick.com www.fxall.com www.atriax.com www.convertbond.com www.bondsonline.com www.bba.org.uk www.streetsoftware.com/data/mpage.htm www.bondmarkets.com

12. Zvi WienerFabozzi Ch 9 slide 12

13. Zvi WienerFabozzi Ch 9 slide 13

14. Zvi WienerFabozzi Ch 9 slide 14

15. Zvi WienerFabozzi Ch 9 slide 15 Questions 9, 16, 21, 22 Home Assignment Chapter 9