products of bond market in italy
DESCRIPTION
as the Title saysTRANSCRIPT
PRESENTATION BY AKASH PAUL LAKRA Roll 766, BBA(H) LLB(H), National Law University, Jodhpur
The environment in which the issuance and trading of debt securities occurs. The bond market primarily includes government-issued securities and corporate debt securities, and facilitates the transfer of capital from savers to the issuers or organizations requiring capital for government projects, business expansions and on going operations.
Issuance and Trading of debt securities
Includes government-issued securities and corporate debt securities
Facilitates the transfer of capital
Data Source: Definition of Bond Market, INVESTOPEDIA, http://www.investopedia.com/terms/b/bondmarket.asp
Characteristics of Bonds
Risks of Bonds
Bond Yields
Data Source: 5 Basic Things To Know About Bonds, INVESTOPEDIA, http://www.investopedia.com/articles/bonds/08/bond-market-basics.asp
Bond Rating
Maturity Bond is Secured or Unsecured
Liquidation Preference
Data Source: 5 Basic Things To Know About Bonds, INVESTOPEDIA, http://www.investopedia.com/articles/bonds/08/bond-market-basics.asp
Coupon
Tax Status Callability
Data Source: Types of Bonds, amfe Finance for Europe, http://investinginbonds.eu/pages/learnaboutbonds.aspx?id=6274
Italian Government Bonds are issued by the Dipartimento del Tesoro
Careful Short Term Investment Zero Coupon Bonds
Allow investors to put some money Zero Coupon Bonds
24 months maturity, with deep discount
Italian Treasury bonds Straight Bonds
Some BTPs are Strippable
Italian Treasury bonds Steady return in real terms Semi Annual Coupons
Principal of the notes and their coupons, payable semi annually, take into account rates of inflation in the Euro-zone as measured by the Eurostat index Harmonised Index of Consumer Prices (HICP), excluding tobacco. At the notes’ maturity, holders of these bonds are compensated for any loss in purchasing power that has occurred over the term of the notes.
Floating rate securities that have a 7 year maturity Semi Annual Coupons
Standard & Poor's downgrades Italy's biggest banks. – Reuters
S&P cut Italy's rating by one notch to BBB and left its outlook negative, citing the country's weak economic prospects and impaired monetary policy transmission within the euro zone. – RTE News
Italy’s projecting economic growth to contract 1.9 percent this year, compared with the Italian government's forecast for a 1.3-percent fall in output. – Reuters
The Euro Zone Crisis has affect the Italian Bond Market gravely
Two-thirds of Italian debt is held by a relatively diverse base of local investors, which tend to hold onto its bonds – RTE News
Italy's economy, the euro zone's third largest, has been one of the most sluggish in the world for over a decade, held back by low competitiveness, a weak political system and a public debt of more than 130% of gross domestic product.