FIM301 IA
Individual Assignment
VALUATION & FINANCIAL MODELLING
Hà Hải Định (SB00961)
Contents
Executive Summary 3
Part 1: Overview of the Japanese Government Bond Market 3
Process of issuance of Government Bonds 4
How Government Bonds are traded in the market 4
Some statistic data about the Government Bond market during the past 5-10 years 5
Part 2: Compare with the Vietnamese Government Bond market 1
- The differences between the two markets 1
- Advantages and Disadvantages of Vietnamese Gov Bond market 3
- Prospect of Vietnamese Government Bond market 5
Part 3: Suggestions and Conclusions 6
References: 7
Executive Summary
Objectives: Comparing Vietnamese Government Bonds and Japanese Government Bonds to make suggestions to customers.
Methods: Comparing government bonds of the two countries in different terms.
Results: Customers had better invest in Japanese government bonds.
The Structure:
Types of bonds and their issuers; Process of issuance of Government Bonds
How Government Bonds are traded in the market
Some statistic data about the Government Bond market during the past 5-10 years
Compare Vietnamese Government Bonds and Japanese Government Bonds
Advantages and Disadvantages of Vietnamese Government Bond market
Prospect of Vietnamese Government Bond market
Suggestions and Conclusions
Part 1: Overview of the Japanese Government Bond Market
Types of bonds and their issuers:
1. Short-term bills (6-month and 1-year),
2. Medium-term notes (2-year and 5-year bonds),
3. Long-term bonds (10-year bonds) and
4. Super long-term bonds (20-year, 30-year and 40-year bonds)
5. JGBs for retail investors (3-year, 5-year and 10-year)
Process of issuance of Government Bonds
The most common process of issuing bonds is through underwriting. In underwriting, one or more securities firms or banks, forming a syndicate, buy an entire issue of bonds from an issuer and re-sell them to investors.
Indeed, JGBs are mainly issued as either underwritten by primary dealers (PDs, so-
VALUATION & FINANCIAL MODELLING
Hà Hải Định (SB00961)
Contents
Executive Summary 3
Part 1: Overview of the Japanese Government Bond Market 3
Process of issuance of Government Bonds 4
How Government Bonds are traded in the market 4
Some statistic data about the Government Bond market during the past 5-10 years 5
Part 2: Compare with the Vietnamese Government Bond market 1
- The differences between the two markets 1
- Advantages and Disadvantages of Vietnamese Gov Bond market 3
- Prospect of Vietnamese Government Bond market 5
Part 3: Suggestions and Conclusions 6
References: 7
Executive Summary
Objectives: Comparing Vietnamese Government Bonds and Japanese Government Bonds to make suggestions to customers.
Methods: Comparing government bonds of the two countries in different terms.
Results: Customers had better invest in Japanese government bonds.
The Structure:
Types of bonds and their issuers; Process of issuance of Government Bonds
How Government Bonds are traded in the market
Some statistic data about the Government Bond market during the past 5-10 years
Compare Vietnamese Government Bonds and Japanese Government Bonds
Advantages and Disadvantages of Vietnamese Government Bond market
Prospect of Vietnamese Government Bond market
Suggestions and Conclusions
Part 1: Overview of the Japanese Government Bond Market
Types of bonds and their issuers:
1. Short-term bills (6-month and 1-year),
2. Medium-term notes (2-year and 5-year bonds),
3. Long-term bonds (10-year bonds) and
4. Super long-term bonds (20-year, 30-year and 40-year bonds)
5. JGBs for retail investors (3-year, 5-year and 10-year)
Process of issuance of Government Bonds
The most common process of issuing bonds is through underwriting. In underwriting, one or more securities firms or banks, forming a syndicate, buy an entire issue of bonds from an issuer and re-sell them to investors.
Indeed, JGBs are mainly issued as either underwritten by primary dealers (PDs, so-
References: (Amount of Local Government Bond issued, sorted by prefecture and Government-designated cities. FY 2008. See on 30/10/2014. <http://www.chihousai.or.jp/english/05/data01.html > ) (Japanese Government Bonds. 10/2014. See on 31/10/2014. <http://www.bloomberg.com/markets/rates-bonds/government-bonds/japan/> ) (Nguyen Ngoc Anh. 11/2009. VIETNAM BOND MARKET. See on 2/11/2014. <https://www.bundesbank.de/Redaktion/EN/Downloads/Tasks/Financial_and_monetary_system/Conferences/2009_11_12_frankfurt_02_anh_paper.pdf?__blob=publicationFile> ). (Local Government Bond System and Market in Japan. 08/2010. See on 3/11/2014 <http://www.jlgc.org.uk/en/pdfs/MIC%20LGB.pdf> ) (PHAN THỊ THU HIỀN. 30/07/2014. Thị trường trái phiếu Việt Nam và định hướng phát triển. See on 2/11/2014. < http://www.tapchitaichinh.vn/Chung-khoan/Thi-truong-trai-phieu-Viet-Nam-va-dinh-huong-phat-trien/52086.tctc> ). (Khánh Nhi.23/09/2014.Thị trường Trái phiếu Chính phủ Việt Nam tăng trưởng 23%/năm. See on 02/11/2014 <http://cafef.vn/thi-truong-chung-khoan/thi-truong-trai-phieu-chinh-phu-viet-nam-tang-truong-23nam-201409231407480808ca31.chn> ) (Tạp chí Tài chính số 11. 2013. Thị trường trái phiếu Việt Nam và định hướng phát triển. See on 3/11/2014 <http://www.tapchitaichinh.vn/Trao-doi-Binh-luan/Thi-truong-trai-phieu-Viet-Nam-va-dinh-huong-phat-trien/38303.tctc> ) (Trái phiếu chính phủ tăng trưởng 23%. 24/092014. See on 3/11/2014. < http://www.baomoi.com/Trai-phieu-chinh-phu-tang-truong-23/126/14883742.epi> )