Essay on US Bond Market

Convertibles are appealing to investors who are looking for an investment with greater growth potential than that offered by a traditional bond. By purchasing a convertible bond, the investor can still receive

3. Bliss, Robert R., and Ehud I. Ronn. "Callable U.S. Treasury Bonds: Optimal Calls,        Anomalies, and Implied Volatilities." The Journal of Business 71.2 (1998): 211-52. Web.

There are organizations that decide to issue bonds in most cases go through a series of six steps:

Bonds require a minimum amount of money to purchase and a minimum length of time to hold on to the bond.

A bail bondsman is a person who pledges money on behalf of an individual facing legal charges as a guarantee they’ll appear in a court of law. By signing a contract with a bonding company, an individual is able to get out of jail until their appearance before a judge. Even if a person can pay their own bail, it can be advantageous to use a bail bond agent because they will reduce the cost to a fraction of the original posting.

A Florida based bail Bondsman is a person who pledges a particular sum of money or property as a security to a person who is convicted or accused by a court. Under normal situations, bail bond agents charge a fixed fee as equal to 10% of the money agreed in the bail. In things go wrong, the defendant fails to appear in a court, the bail bond agency has to be held responsible and is given full rights to legally hunt the accused of its own with the help of a person provided by the legal authority. In normal cases, the defendant is forced to return to the court and accept his or her act. The bond agent is liable to file a lawsuit against the defendant to get back the loss incurred due to the negligence of defendant's failure to appear in the court.

| |A bond debenture is a legal document that details all of the conditions relating to a bond issue. |

A. Convertible bonds can be converted to other corporate securities during some specific time after issuance.

The stock market in the United States is run so anyone can view the trades, their values and no information is hidden. Compared to the stock market, the bond market is run behind closed doors causing problems in the economy. The difference between the two markets became more understood during the Great Recession. When the unethical ways of individuals in the selling of bonds caused corruption that contributed to the recession, many people were hit by the repercussions of the selfish actions. Selling the bonds to people who weren 't in good financial situations became a normal action which cheated many individuals out of money. The bond market would be better off being transparent parallel to the stock market because less people would

Examples of bond rating agencies include Standard and Poors as well as Moodys. According to the bond credit ratings issued by Standard and Poors, as shown in appendix 1, bonds given an AAA rating have got an almost zero level of credit risk. Nonetheless, bonds rated A and above appear to be safe investments whereas bonds with BBB ratings and below appear as relatively riskier investments.

While many investors are generally familiar with municipal bonds, in reality the municipal bond market is complex and much different than any other market. This is because the market is very fragmented. There are over one million individual bonds outstanding, from 55,000 different issuers, that comprise this $3.7 trillion market. Contrast one million different municipal bonds with the fact that in the U. S. stock market we have roughly 5-6,000 stocks.

The three financial markets, money, bonds and mortgage markets play a large role in the financial industry. Money markets are highly liquid investments that are held for one year or less, and include Treasury Bills. Furthermore, bonds are long term investments issued by corporations and the U.S. government and are held for more than one year. The mortgage market creates loans used to finance the real estate market, once mortgages are issued on a property, banking institutions securitize the mortgages and sell them on the secondary market (CSU Global, 2016). Therefore, these three financial markets are very broad in nature, which can cause a great impact on the financial market.

Examples of these markets are the stock market and the bond market. These markets exist throughout the developed world. Stocks are a share of ownership that you purchase in a company. The money is used to finance the company and the stock holder receives a share of the profit, known as a dividend. The stock holder owns the shares until they choose to sell them. Bonds are a security that helps to pay the debt of an institution. The bond holder is promised periodic payments for a specified amount of time.

Many government related institutions issue bonds, some supported by the revenues of a specific institution and some guaranteed by a government sponsor. For example, in Canada they have a bank that issue bonds that are guaranteed by the

In the context of this report, some major points regarding the bond market in Vietnam are presented. Firstly, a common picture about the Vietnam bond market is drawn. Next come the types of bonds and major participants in this market. Finally, several ways by which bonds are issued are described in details.