Bonds and Ratings

Author: Adam                            Updated: 27/05/2019

1. Bonds

Bonds are long‐term debt securities issued to investors either by a public offering or through a private placement (in both cases with an underwriting process). As anticipated, bonds are long-term debt securities issued to investors either by:

Main features of bonds (current trends):

Types of bonds are:

Conventional bonds are:

Other non-conventional types of bonds are:

Types of hybrid bonds:

Actors Involved are:

Remuneration Fees

2. Rating Bonds

Rating assignment is the result of complex analysis of all the risk profiles of the company. Rating process of a bond has four steps:

A publicly disclosed rating could be beneficial for a company since it allows the widening of the investor base and the subsequent reduction of the pricing for the new bond transaction, currently enhanced for IG credit by the inclusion in the ECB purchase program. Here we listed some pros and cons of the public rating:

Pros

Cons

Indicative Schedule For European Roadshows

  1. marketing activity
  2. credit story
  3. apgetitive of investors
  4. 1-1 basis
  5. roadshow in most important financial centres: Madrid/Amsterdam/London/Paris/Milan/Frankfruit

What to present? (Credit story)

Who should invite to the roadshow?

Timeline of excutiving bonds