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Vietnam Fixed Income Securities

In: Business and Management

Submitted By igloo
Words 1610
Pages 7
International University

2013
VIETNAM FIXED INCOME MARKET
Project for Fixed Income Securities course

Hàn Khánh Phương Dương Khánh Ngọc Nguyễn Kim Ngân Nguyễn Phúc Trọng Phạm Lương Nữ Hoàng

Table of Contents I. INTRODUCTION AND OVERVIEW THE VIETNAM FIXED INCOME MARKET 3 II. TIMELINE 4 III. VIETNAM’S PRIMARY MARKET AND SECONDARY MARKET 5 IV. STATE OF FIXED INCOME MARKET IN VIETNAM 6

I. INTRODUCTION AND OVERVIEW THE VIETNAM FIXED INCOME MARKET
The bond market (also known as the credit, or fixed income market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the Secondary market, usually in the form of bonds. The primary goal of the bond market is to provide a mechanism for long term funding of public and private expenditures.
The "bond market" usually refers to the government bond market, because of its size, liquidity, relative lack of credit risk and, therefore, sensitivity to interest rates. Because of the inverse relationship between bond valuation and interest rates, the bond market is often used to indicate changes in interest rates or the shape of the yield curve. The yield curve is the measure of "cost of funding".
The Securities Industry and Financial Markets Association (SIFMA) classify the broader bond market into five specific bond markets. * Corporate * Government & agency. * Municipal * Mortgage backed, asset backed, and collateralized debt obligation * Funding
When the Vietnam securities market started in 2000, government bonds were the only major products to be listed for trading on the market. In September 2009, HNX established an electronic bond-trading system for government bonds. The operation of the new system was built completely separate from the bond market, with...

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