Comparison Between Japanese Gov Bond and Vietnamese Gov Bond

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  • Topic: Bond, Bonds, Bond market
  • Pages : 21 (4693 words )
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  • Published : April 9, 2013
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2013

FIM301- Individual Assignment
FB606- Dao Xuan Huong- ID: FB00174
You are an analyst, who is drafting a report upon request of a customer on The Government Bond market of Japan in comparison with that of Vietnam. Present an overview and all other knowledge about the market in a form of a formal report to support the investment decision of your customer on this market.

Dao Xuan Huong FPT University- Fb606 1/1/2013

Contents
I. Executive Summary: ................................................................................................. 2 II. Overview of the Japanese Government Bond market. ............................................. 3 2.1 2.2 2.3 2.4 III. 3.1 3.2 Types of Japanese Government Bonds and their issuers: ................................. 3 Process of issuance of Japanese Government Bonds: ...................................... 5 How Japanese Government Bonds are traded in the market: .......................... 11 Some statistic data about the JGBs market during the past 5-10 years: .......... 13 Compare with the Vietnamese Government Bond market:.................................. 17 The differences between the two markets: ....................................................... 17 Advantages and Disadvantages of Vietnamese Government Bond market: .... 19

Prospect of Vietnamese Government Bond market: .................................................. 24 IV. 4.1 4.2 Suggestions and Conclusions: ............................................................................ 25 Solution to utilize and develop the Gov bond market of Vietnam: .................... 25 Conclusions on findings regarding the investment decision of the customer: .. 26

V. References: ............................................................................................................ 27

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I.

Executive Summary:

In the purpose of bringing the general view of The Government Bond market of Japan, and comparison with that of Vietnam , by searching and analyzing method, this report give the investor the general knowledges of : Japanese Government Bond, Diffirentces between Japan and Vietnam’s Government bonds market and advice on invesment in Japanese Government Bonds or Vietnam’s. The report will focus in three main part:

Part 1: Overview of the Japanese Government Bond market.

In this part, we will go through to Types of Japanese Government Bonds and their issuers, Process of issuance of Governement Bonds, How Government Bonds are traded in the market and Some statistic data about the Gov Bond market during the past 5-10 years.

Part 2: Compare with the Vietnamese Government Bond market.

In details, this part will show us about : The differences between the two markets, Advantages and Disadvantages of Vietnamese Gov Bond market and the Prospect of Vietnamese Government Bond market

Part 3: Sugesstion and conclusion:

In this part I will give the solution to utilize and develop the Gov bond market of Vietnam and conclusions on my findings regarding the investment decision of the customer.

2

II.
2.1

Overview of the Japanese Government Bond market.
Types of Japanese Government Bonds and their issuers:

Japanese Government Bonds (JGB) are the securities which are issued by the Japanese State Government . The State Government is responsible for interest and principal payments, the interest is paid the semi-annually (except the shot-term JGB) and the principal payments are secured at maturity.

The Japanese Government Bonds can be divided into 2 main types:

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Treasury Discount Bills:

Short-term JGBs (6-month and 1-year treasury bills) are all discount bonds, meaning that they are issued at a price lower than the face value. No interest payments are made, but at maturity the principal amounts are redeemed at face value.

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JGBs

It’s Japanese Government Bonds which have fixed-rate coupons which are determined at the time of issuance and are paid on a...
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