From the Collaborative Bond and Money Market Data Portal.
The original Eurobond market started by targeting bonds towards a pool of Euro-dollars, USD sitting in US offshore accounts, mainly in Europe/London. The term Eurobond combines attributes from the fields Market and Security Type.
In the Collaborative Bond and Money Market Data Model, the attribute Euro appears within the field Market, whilst the attribute Bond appears within the field Security Type. Both fields are part of the universe of Bond and Money Market Instruments.
The field "Market" is a reference for where the instrument can or is most likely to have been sold. It has 4 attributes:
- Domestic Market.
- Foreign Market.
- Euro Market, and
- Global Market.
Domestic and Foreign together comprise the Local Market.
Foreign, Euro and Global together comprise the cross boarder also referred to as International Market.
Definition: The term Eurobond, depending on context, can mean a number of things. In addition to being a reference to the market, it can also simply mean EUR denominated or issued by an issuer that is domiciled in the EU. More often the term is used for international cross border bonds.
In defining a market CMDportal often uses the characteristic that the ISIN starts with specific two letters:
- XS for the Euro Market
- not XS for Local Market Commercial Paper that is either Domestic or Foreign. Foreign is where the issuer is not from the country identified by the ISIN. For example, a German borrower issuing a Debt Instrument that has an ISIN starting with DE is considered Domestic, where as a non German borrower issuing a DE ISIN is considered Foreign. These classifications are not perfect as
A Eurobond is a bond targeted at cross-border international "Euro market " distribution. It does not follow the rules of a particular local market. Its cross-border status is determined by documentation and contractual arrangements. Eurobonds are typical free of any national withholding taxes.
The Local Market, within one country, consists of Domestic and Foreign Bonds. Domestic is all that is issued by borrowers from that country, whilst foreign is all that is issued by borrowers who are not from that country or in a currency that is not that country's currency.
Where no classification is provided and the ISIN does not start with XS, the default is Domestic Market. In capital market data analysis CMDportal often uses the characteristic that the ISIN starts with specific two letters:
- XS for International bonds, which can either be Euro, Foreign or Global bonds and
- not XS for bonds that are Domestic bonds, such as DE for German Domestic Bonds, FR for French Domestic Bonds etc.
Subscribing CMDportal users can filter for bonds by Market typing these first two letters in the ISIN filter or by using the Market filter as provided by most tools on the portal.
For information on issues in the Eurobond Market, please use the Instrument Search tool.
For information on the current size of the Eurobond Market, please use the Data Sheet tool.
For information on the composition of the Eurobond Market, please use the Issuer Search tool.
For information on active dealers in the Eurobond Market, please use the Dealer Search tool.
For information on active investors in the Eurobond Market, please use the Fund Search tool.
