The equity raise this time around is three times smaller
than the debt issuance.
Those with long - term investment horizons can benefit by gaining exposure to bond strategies that allocate to countries on the basis of debt - servicing economic resources rather
than debt issuance, effectively raising the relative credit quality of holdings.
Not exact matches
It also appears that the ECB will concentrate on reducing its purchases of government (rather
than corporate) bonds, but here
issuance is increasing, with the net amount of eurozone government
debt set to expand in 2018, in contrast to the contraction seen over the previous 18 months.
Brazil's
debt market is three times larger
than its equity market by total
issuance.
The bill's passage also potentially complicates Treasury
issuance relative to the
debt ceiling, as lower tax receipts under the new tax plan could cause Treasury to run out of extraordinary measures earlier
than originally thought.
«You think about the second half of the year, Treasury has a ton of
debt to get out there, and pretty quickly it needs to ramp up
issuance sizes even more
than today» in maturities of five - years and greater, Mike Schumacher, head of rates strategy at Wells Fargo Securities, said on Bloomberg TV.
In all, so - called «reverse Yankee credits» account for more
than 20 % of European corporate
debt issuance so far this year, feeding a patriotism of sorts in continental financial circles.
The stock briefly traded for less
than 17x 2018 earnings estimates because investors feared that rising interest rates and changing tax policies would depress
debt issuance.
o
Issuance of Euro Bond and use of some of the proceeds for reprofiling more expensive domestic
debt o Creation of benchmark domestic bonds through tap - ins rather
than new
issuances.
But the governor's response has been to propose taking even more oversight away from the comptroller over contracts and
debt issuance rather
than bringing back what was taken.
Rather
than investing in assets or technology, many companies used the proceeds from
debt issuances to pay dividends or support buyback programs.
Corporate bonds are considered to be riskier
than government bonds because the investment grade rating of corporate bonds varies depending on the
debt issuance and revenue of the company.
Combined, companies from these three sectors accounted for more
than 50 % of all
debt issuances to enter the index in the year.
Some of the
debt securities (with a fixed maturity date of more
than one year from the date of
issuance) that may be acquired by the Fund in the secondary market may be treated as having market discount.
Such
debt will, of course, be more costly on
issuance than simple debentures, but its existence could materially reduce moral hazard.