CHAPTER 4Eurobonds, Securitisation and Structured Finance
“It does not seem to me as though anything I've ever done was quite well enough done. That is an aching, unsatisfied feeling and ends up by making me wish I hadn't done anything.”
—T. E. Lawrence, quoted in Orlans, H., editor, Lawrence of Arabia, Strange Man of Letters – the Literary Criticism and Correspondence of T. E. Lawrence, London 1993, p.32.
As we noted previously, there is almost infinite variety in debt capital market products. This chapter highlights just some of the variety, starting with the more or less plain vanilla Eurobond onto other instruments such as convertible bonds and “CoCos”, and then finally the structured products that arise out of the securitisation process. Along the way we introduce ratings agencies and the credit rating process. There is further material on the book's website, which contains a number of PowerPoint decks on securitisation and the credit ratings process.
This extract from An Introduction to Bond Markets, Fourth Edition (2010)