On the bond financing

Abstract: The bonds are issued to investors and also the principal of the debt by about certificates of indebtedness, is an important means of financing and financial instruments. Bonds has four basic characteristics, namely, repayment, liquidity, safety and profitability. It can be the main issue, distribution methods, release time, the length of the period, interest payment method and other methods to classify, have a common bond or treasury bonds , financial bonds, corporate bonds, corporate bonds, convertible bonds, separation of trading convertible bonds, short-term financing bonds and medium-term notes and so on. 
Keywords: bond and the bond market, bond types, common bonds introduced 

First, bond and government bond market  bonds, financial institutions, businesses and other organizations raise funds directly to the community when the debt issued to investors and promise to pay interest at a certain rate according to the agreed conditions of repayment of the principal credit and debt certificates, It is an important means of financing and financial instruments. bonds between the purchaser and the issuer is a credit and debt, the bond issuer is the debtor, investors (or creditors, bondholders that. 
Bonds has four basic characteristics: First, repayment of the bonds generally provide a maturity, the issuer must repay the principal and the agreed conditions of payment of interest, and second, liquidity, bonds can generally be freely transferable on the market in the circulation, the three is security, compared with stocks, bonds usually provide a more stable fixed-rate income, less risk, four are profitability, investment bonds, investors can be regularly or irregularly to bring interest income, bond prices can also be used changes, the sale of bonds to make the difference. 
Issuance and trading of bonds, the bond market place called, according to bond market to run the basic functions of the process and into the distribution market and distribution market, according to the market form of organization is divided into exchange-traded market and the OTC market, according to the bond site were divided into domestic bond market and international bond markets. 
Bond market in the economy plays an important role, it has several important functions: First, the financing function, the bond market so that the flow of funds from the capital funding needs of those who left for lack of funds by fund-raising function, the second is liquidity oriented function, through the bond market, the advantages of corporate funds to be concentrated, thus contributing to the optimum allocation of resources, the three macro-control function, overheating in the economy, the need to reduce the money supply, the central bank to sell bonds to recover the financial institution or public support Some part of the currency to curb overheating of the economy to run, when the economic recession, the need to increase the money supply, the central bank will buy bonds to increase the money supply.

Second, the types of bonds
 The types of bonds the following classifications:
 1, classified according to the main issue: the main issue according to the different bonds can be divided into government bonds, financial bonds, corporate bonds and corporate bonds, four major categories of Government bonds are bonds issued by the government, its tax-exempt interest, which bonds issued by the Central Government, also known as bonds or Treasury bills of financial bonds by the banks or other financial institutions to issue bonds corporate bonds by the central government-owned institutions, state-owned enterprises or state-controlled enterprises to issue bonds, bond funds major limitation in the use of fixed-asset investment and transformation of technological innovation, and approval of projects with government departments directly linked to the company bonds or limited liability company by the Corporation bonds, issued its long-term goal is to raise funds for construction, general has a specific purpose.

 2, classified by issue area: Bonds can be divided into domestic bonds and international bonds.

 3, classified according to the length of the period: according to the length of maturity, bonds  can be divided into short, medium and long-term bonds is the general criteria for the classification period of one year following the short-term bonds for a period of 10 years for long-term bonds , and 1-year period to 10 years in between the medium-term bonds.

 4, interest-bearing debt by way of classification: can be divided into interest-bearing bonds, discount bonds and ordinary bonds. Interest-bearing coupon bond is its face with the long-term coupon bonds are discount bonds at issue by required discount rate is lower than the face value of bonds to sell.

 5, according to the interest rate is fixed categories: can be divided into fixed-rate bonds and floating rate bonds Fixed rate bonds is the interest rate printed on the ticket in accordance with its bond interest payments to bondholders. Floating rate bond coupon rate is With the changes in market interest rates adjusted interest rate.

 6, by way of issue of classification: public offering can be divided into bonds and private bonds is raised in accordance with statutory procedures bond, approved by the securities authorities in the issuance of bonds on the open market, the issue object is not qualified. Private placement bonds are issued who have a specific relationship to its minority investors to raise the object and bonds.

 7, according to whether the collateral Category: Credit can be divided into bonds and covered bonds. Debentures also known as unsecured debt, the bond issuer's credit alone is issued, there is no collateral as security for bonds. Secured bond means to the mortgaged property as collateral and bonds, including: the real issue for the mortgage collateral and mortgage bonds, the company securities (stocks and other securities) as collateral and collateral trust bonds issued by a third guarantee payment of principal and interest of the underwriting those bonds. Links to free download http://www.hi138.com
 8, classified according to whether anonymous: can be divided into bearer bonds and bearer bonds.

 9, classified by release time: can be divided into both new issuance of bonds and issue bonds.

 10, according to whether it can be converted to other financial instruments classified: can be divided into non-convertible bonds and convertible bonds.

 11, classified according to whether early repayment: can be divided into callable bonds and noncallable bonds.

 12, repaid in different ways according to categories: bonds and can be divided into a maturity stage maturity bonds.

 13, short-term financing bonds are issued by the company short-term unsecured promissory notes, credit facilities are in China, the short-term financing bills is an enterprise in accordance with <<short-term financing bills management approach>> the conditions and procedures in inter-bank bond market and trading and debt service agreement within a certain period of securities, corporate financing short-term (less than 1 year of direct capital financing.

Third, several common bonds introduced  1, bonds or treasury bills such as government bonds are bonds issued by the central government, its tax-exempt interest, but by all levels of local government bodies such as cities, counties, towns and other bonds issued by the as local government bonds.

 2, financial bonds by banks and non-bank financial institutions (insurance companies, securities companies, etc.) bonds issued by financial bond coupon rate is usually higher than the national debt, but less than corporate bonds for institutional investors, financial bonds issued in inter-bank bond market, individual investors can buy and trade.

 3, corporate bonds are owned by the central government agencies, state-owned enterprises or state-controlled enterprises to issue bonds, bond funds primarily limit the use of fixed-asset investment and the transformation of technological innovation, and approval of projects with government departments are directly Union.

 4, corporate bonds by the Corporation or limited liability company bonds company bonds coupon rate higher than government bonds and financial bonds, company bonds with a risky, high yield characteristics.

 5, convertible bonds (referred to as convertible bonds) is issued by the listed company, marked at issue, the issue price, interest rates, repayment or conversion period, bondholders have the right to redemption or maturity period and price in accordance with the provisions of convert to common stock of the issuer of debt securities, the interest rate is usually lower than non-convertible bonds. convertible bondholders in a certain period of time, under certain conditions, holders of the bonds can be converted into a number of common shares shares, it is a range in stocks and bonds between the two hybrid financial instruments. issuance of convertible bonds by the State Council securities regulatory approvals and distribution companies should also have the issue of corporate bonds and the conditions for issuing shares.

 6, is a separate trading of convertible bonds with warrants, corporate bonds, corporate bonds plus warrants is a combination of products, the issuance, the warrants and bonds together, and after the listing, detachable convertible bonds and automatically split into bonds and warrants, in two different markets transactions, also known as separate convertible bonds. net debt and detachable warrants for the two parts, giving the listed company issued twice a financing opportunities. Detachable convertible bonds and ordinary bonds and the essential difference between the detachable options trading, convertible bonds separate reset and no redemption provisions for ordinary options in convertible bonds and bonds are generally synchronized to the period, while the <<issuance of securities of listed companies management approach>> states: Bonds with Warrants "warrants do not exceed the duration of the term corporate bonds, since the end of the date of issuance of not less than six months." .

 7, short-term financing bonds are issued by the company short-term unsecured promissory note, is an enterprise in accordance with <<short-term financing bills management approach>> the conditions and procedures in inter-bank bond market and trading and principal payments within a certain period agreed interest-bearing securities, the companies raise short-term (less than 1 year of direct financing funds short-term financing bonds of types: (1) by way of issuance of financing bonds into broker consignment and direct sales of financial securities, (2 ) by divided into the issuer's securities finance business finance corporate finance and non-financial securities, (3) by financing bonds issued and outstanding range is divided into domestic and international financing bills financing bonds. generally only the strength of credit is the degree large companies with high short-term financing bonds are eligible to issue short-term financing bonds issued must also comply with <<short-term financing bills management approach>> issue of the conditions set forth.

 8, medium-term notes is a registered and approved by regulatory authorities, after a continuous period of registration issued by public offering in the form of debt securities, by its very nature is a 3-5 year medium-term corporate bonds issued its most prominent feature is Investors are free to negotiate and finalize the terms of issue (such as interest rate, duration and whether the price or other index-linked assets, etc.) medium-term notes and short-term financing bonds of difference: different distribution period, short-term financing of the period of less than 1 year, medium-term notes of the period is generally less than 5 years.  Links to free download http://www.hi138.com
In this paper, meaning, the basic characteristics and types in terms of bond market made some analysis and comparison, and strive to understand the above, based on the readers of these similar but different varieties of a certain bond of Discrimination ability of the different nature of the companies can choose the characteristics of bonds relative to their own kind for financing, production and management to meet the demand for capital.

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