International bond and Matching: Difference between pages

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1.  
1. ''Investment management.''


Formerly (and still much more commonly) known as a Eurobond.
Arranging that in a portfolio of assets and liabilities the cash flows generated by the assets can be expected to meet the liability payouts either because:
:(1) the assets generate income of the right amount at the right time or
:(2) because the market values of the assets are linked to (positively correlated with) the market values of the liabilities.


An offshore bond in the international capital markets, issued in a [[Eurocurrency]], most frequently in USD. 


Maturities at issue are normally greater than one year.
2. ''Interest rate risk management.''


They are usually - but not always - in bearer form.
Equalising or approximating the modified duration of assets and liabilities in a portfolio, to manage interest rate risk.


They can be issued on any interest basis.


3. ''Interest rate risk management.''


2.  
Equalising or approximating both the modified duration and the modified convexity of assets and liabilities in a portfolio.


Any bond issued outside the country of domicile of the issuer.


This includes both eurobonds, defined above, and foreign bonds.
4. ''Financial reporting''


 
The Accruals concept in accounting.
3.
 
The term 'international bond' is also sometimes used (incorrectly) to refer to a global bond.




== See also ==
== See also ==
* [[Domestic bond]]
* [[Accruals concept]]
* [[Eurobond]]
* [[Convexity]]
* [[Eurocurrency]]
* [[Correlation]]
* [[Foreign bond]]
* [[Diversification]]
* [[Global bond]]
* [[Duration]]
* [[Financial reporting]]
* [[Financial statements]]
* [[Immunisation]]
* [[Interest rate risk]]
* [[Investment]]
* [[Modified convexity]]
* [[Modified duration]]
* [[Portfolio immunisation]]
* [[Risk management]]


[[Category:Technical_skills]]
[[Category:Manage_risks]]

Revision as of 10:14, 16 September 2020

1. Investment management.

Arranging that in a portfolio of assets and liabilities the cash flows generated by the assets can be expected to meet the liability payouts either because:

(1) the assets generate income of the right amount at the right time or
(2) because the market values of the assets are linked to (positively correlated with) the market values of the liabilities.


2. Interest rate risk management.

Equalising or approximating the modified duration of assets and liabilities in a portfolio, to manage interest rate risk.


3. Interest rate risk management.

Equalising or approximating both the modified duration and the modified convexity of assets and liabilities in a portfolio.


4. Financial reporting

The Accruals concept in accounting.


See also

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