Medium term note: Difference between revisions
m no commercial ads for brokers |
Sidnfuasdusn (talk | contribs) editor |
||
| Line 1: | Line 1: | ||
{{Refimprove|date=May 2009}} |
{{Refimprove|date=May 2009}} |
||
A '''Medium Term Note''' (MTN) is a [[debt note]] that usually matures (is paid back) in |
A '''Medium Term Note''' (MTN) is a [[debt note]] that usually matures (is paid back) in 5–20 years, but the term may be as short as one year or as long as 50 years. They're normally issued on a floating basis such as [[Euro Interbank Offered Rate|Euribor]] +/- basis points. When they are issued in a Euro-currency (say, Eurodollars or Euroyens), they are called "Euro Medium Term Notes". They are only issued by Medium Term Note brokers such as Rockwick Capital, or various investment banks (although you will pay a hefty premium going to the investment banks). |
||
==Medium Term Note Program== |
==Medium Term Note Program== |
||
The notes are usually connected to a Medium Term Note Program, which is a funding program used by issuers to receive [[bond debt]] funding on a regular and continuous basis. Their programs can include more than one issuer although the issues are independent up to a maximum amount authorised. The advantage to issuers is that they are not required to produce a full suite of legal documents each time they want to issue notes. Instead, a series of underlying documents are amended with each issue by a pricing supplement which sets out the terms of each specific issue of notes. This makes access to debt funding easier and cheaper. |
The notes are usually connected to a Medium Term Note Program, which is a funding program used by issuers to receive [[bond debt]] funding on a regular and continuous basis. Their programs can include more than one issuer although the issues are independent up to a maximum amount authorised. The advantage to issuers is that they are not required to produce a full suite of legal documents each time they want to issue notes. Instead, a series of underlying documents are amended with each issue by a pricing supplement which sets out the terms of each specific issue of notes. This makes access to debt funding easier and cheaper. |
||
Most large companies have established Medium Term Note Programs to finance their medium term financing needs. Countries also use these programs to access the [[capital markets]]. |
Most large companies have established Medium Term Note Programs to finance their medium term financing needs. Countries also use these programs to access the [[capital markets]]. |
||
| Line 9: | Line 9: | ||
==References== |
|||
*[http://www.realcorporatelawyer.com/faqs/faqmtn.html Description of Medium Term Note programs and how they work from Realcorporatelawyer.com] |
|||
==External links== |
==External links== |
||
Revision as of 06:28, 15 August 2009
 | This article needs additional citations for verification. (May 2009) |
A Medium Term Note (MTN) is a debt note that usually matures (is paid back) in 5–20 years, but the term may be as short as one year or as long as 50 years. They're normally issued on a floating basis such as Euribor +/- basis points. When they are issued in a Euro-currency (say, Eurodollars or Euroyens), they are called "Euro Medium Term Notes". They are only issued by Medium Term Note brokers such as Rockwick Capital, or various investment banks (although you will pay a hefty premium going to the investment banks).
Medium Term Note Program
The notes are usually connected to a Medium Term Note Program, which is a funding program used by issuers to receive bond debt funding on a regular and continuous basis. Their programs can include more than one issuer although the issues are independent up to a maximum amount authorised. The advantage to issuers is that they are not required to produce a full suite of legal documents each time they want to issue notes. Instead, a series of underlying documents are amended with each issue by a pricing supplement which sets out the terms of each specific issue of notes. This makes access to debt funding easier and cheaper.
Most large companies have established Medium Term Note Programs to finance their medium term financing needs. Countries also use these programs to access the capital markets.
External links
 | This economics-related article is a stub. You can help Wikipedia by expanding it. |