Page 41 - FINAL CFA SLIDES DECEMBER 2018 DAY 14
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Session Unit 14:
51. Fixed income markets: issuance, trading and funding
LOS 51.g: Describe types of debt issued by corporations., p.23
• Debt issued by corporations includes bank debt, commercial paper, corporate bonds,
and medium-term notes. Bank debt includes bilateral loans from a single bank and
syndicated loans from multiple banks.
• Commercial paper is a money market instrument issued by corporations of high credit
quality.
• Corporate bonds may have a term maturity structure (all bonds in an issue mature at
tanties
the same time) or a serial maturity structure (bonds in an issue mature on a
predetermined schedule) and may have a sinking fund provision.
• Medium-term notes are corporate issues that can be structured to meet the
requirements of investors.