Citi, a leading global bank, operates in over 160 countries and has approximately 200 million customer accounts. It provides various financial products and services to consumers, corporations, and institutions. Citi's businesses include consumer banking, institutional banking, and wealth management. The bond market involves buying and selling debt securities like government and corporate bonds. International bonds are issued in foreign currencies and can be classified as domestic, euro, or foreign bonds. They provide opportunities for international fundraising and portfolio diversification but also carry risks like interest rate, default, inflation, and currency fluctuation risks.

1. International Bond Market
(A Study on Citi Bank)
Vipin Vettickal
Olgay Adana
Aydan Fatullayeva

2. Citi, the leading global bank, has approximately 200
million customer accounts and does business in
more than 160 countries and jurisdictions. Citi
provides consumers, corporations, governments and
institutions with a broad range of financial products
and services, including consumer banking and
credit, corporate and investment banking, securities
brokerage,
transaction
services,
and
wealth
management.

4. 
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Consumer businesses
Institutional businesses

5. 
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Retail Banking
Citi Branded Credit Cards
Citi Retail Services
Citi Commercial Bank
Citi Mortgage

6. 
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Securities & Banking
Citi Markets
Corporate & Investment Banking
Citi Private Bank
Citi Treasury & Trade solution
Citi Securities and Fund services

7. WHAT IS BOND MARKET ?
The bond market is a financial market where participants buy
and sell debt securities , usually in the form of bonds.
The bond market primarily includes:I) Government-issued securities.
II) Corporate debt securities.

8. A bond issued in a country or currency other than that of the
investor or broker. They include Eurobonds, which are issued in
a foreign currency, foreign bonds, which are issued by a foreign
government or corporation in the domestic market, and global
bonds, which are issued in both domestic and international
markets.
INTERNATIONAL BOND IS FURTHER CLASSIFIED IN
THREE TYPES
 Domestic Bond
 Euro Bond
 Foreign Bond

9. 
It is a debt market

It is a fund raising market
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Fixed income instrument

Issued in foreign currency
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It channelizing savings

10. 
Step 1:-A borrower will contact an investment
banker.
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Step 2:- The lead manager will invite other banks.
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Step 3:-The managing group and banks will serve as
underwriters for the
underwriter issues.
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Step 4:-The various members of the underwriting
syndicate receive a
portion of the spread.
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Step 5:-The lead manager receives the full spread.

11. 
Straight Fixed-Rate
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Floating-Rate Note

Convertible Bond
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Straight Fixed-rate with equity warrants
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Zero coupon bond
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Dual-Currency bond

12. 
Inflation Risk
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Interest Rate Risk
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Default Risk
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Downgrade Risk

Liquidity Risk
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Reinvestment Risk
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Rip-off Risk

13. Diversify your portfolio
International fund raising instrument
Outperformed by Mutual Funds
Fees
Fixed income market
Risk
Investment avenue(short term as well
as long term)
Limited Selection

14. 
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Treasury bonds
Corporate bonds
Municipal bonds
Mortgage securities
International and emerging-market bonds

15. 
U.S. Treasuries are considered among the safest investments
because they are backed by the "full faith and credit" of the
U.S. government. While the regular interest payments from
Treasuries are considered quite secure, the value of these
bonds can fall sharply when interest rates rise. The bonds also
carry inflation risk. We could lose money in inflation-adjusted
terms if, say, consumer-price increases outpace the interest
rate on your bonds.
Comes in Three Versions :


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Treasury bills
Treasury notes
Treasury bonds

16. 
Treasury bills
which mature in 90 days to one year
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Treasury notes
which mature in two to ten years
Treasury bonds
which have maturities of up to 30 years

17. 
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Corporate securities can offer higher yields, but they are
also among the riskiest bonds, because they are backed
only by a company's promise to pay. Interest on
corporate bonds is fully taxable.
Corporate bonds are generally categorized into two
broad groups
1.Investment grade
2.High-yield

18. Investment-grade bonds
 Investment-grade bonds have ratings of Baa and above from
Moody's Investors Service and BBB and above from Standard &
Poor's.
High-yield bonds
 High-yield bonds are considered to have a greater risk of default
than their investment-grade counterparts. Indeed, they are often
called "junk bonds."

19. Municipal bonds, or "munis," generally have lower yields than other bonds.
But they are still a popular investment, especially with high-income
earners.
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Munis pay interest that is potentially exempt from federal, state and local income
taxes.
Munis are exempt from state taxes if you own securities issued from within your
state of residence.
Local tax exemption applies if you hold securities issued from within your city of
residence
That municipal-bond interest can be subject to the Alternative Minimum Tax
classified into two groups General obligation
 Revenue bonds

20. General obligation

General obligation bonds are backed by the taxing authority of the
state or municipality
Revenue bonds
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Revenue bonds are issued by an agency, commission or authority

21. 
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Mortgage securities are backed
by an underlying bundle of
mortages
carry a number of risks
homeowners generally refinance
when interest rates are low,
investors will have to reinvest at
those lower rates. This is known
as prepayment risk
Investors also face other risks,
notably the risk that some
homeowners may default on their
mortgage payments. This can
translate into a loss of money for
mortgage-bond holders.

22. 
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International bonds, including emergingmarket debt, are issued by non-U.S.
governments and corporations
International bonds carry many of the same
risks as U.S. bonds, including interest rate
risk, inflation risk and default risk
Investors have to contend with another
important risk: currency risk
International bonds can also be buffeted by
political, economic and social turmoil in the
issuing country

23. Thank you