Bond market PDF

Vienna Stock Exchange
September 11, 2018 – 07:35 am
Contagion in the Euro Area Sovereign Bond Market (PDF Download

The segment bond market contains all bonds that have been admitted to listing on the Official Market or Second Regulated Market or admitted to trading in the Third Market. These are government bonds, federal treasury certificates, treasury notes, interest rate and government strips, corporate bonds, banking bonds and convertible bonds. The trading architecture used is Xetra® Classic with the trading procedure "Auction" (single intra-day auction). For bonds in the market segments public sector, corporates prime, corporates standard and financial sector having a market maker, the trading procedure is "Continuous Trading" in conjunction with several auctions (opening auction, closing auction).

public sector

The public sector segment contains all debt securities issued by government bodies or that have a guarantee from the public sector: Austrian federal government bonds, Austrian Treasury bills (ATBs), bonds issued by provincial governments, bonds issued by other states or ASFiNAG and ÖBB Infrastruktur AG.

corporate sector

The segment corporate sector contains bonds, that are issued by companies for the purpose of financing corporate activities (Bonds issued by banks are, by definition, not classified as corporate bonds.). Debt financing through the capital market continues to play a mayor role in Austria, since 2001 the issued volume for corporate bonds has increased substantially.

The corporate sector is divided into the corporates prime segment and the corporates standard segment.

  • corporates prime
    Issuers whose bonds are assigned to the corporates prime segment enter into a contract under which they agree to comply with transparency, quality and disclosure criteria that are more stringent than the applicable legal provisions of the Stock Exchange Act and the provisions of the rules for the operation of the Third Market. The admission criteria and ongoing obligations are specified in the rules for the corporates prime segment (pdf-file 300 KB – German).
  • corporates standard
    The corporates standard segment contains all other corporate bonds, which do not meet specific additional criterias of the corporates prime segment.

financial sector

The financial sector segment contains debt securities issued by banks and insurance companies. This is the largest segment as measured by the number of issues. Investors have a wide choice of products as regards the security of their investment (asset-backed bank bonds, mortgage-backed bonds and mortgage-backed bonds issued by public bodies, unsecured bonds, junior bonds and unsecured supplementary capital bank bonds) as well as type of interest (fixed-interest bonds, floating rate bonds, zero-coupon bonds).

performance linked bonds

The performance-linked bond segment contains structured bonds whose interest and repayment depend on an underlying instrument. Underlyings may be stock indices, commodities, hedge funds, etc. The issuers are usually banks or special purpose vehicles (SPVs). The range of products includes securities with a capital guarantee as well as without a capital guarantee, and reverse convertible notes (cash or share bonds).

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