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“The Eurobond market acts as both a primary and secondary market often underwritten by banks through revolving underwriting facilities.”
Dear sir, can you pls explain this extract from the text?Eurobonds are bonds issued in a different currency from that of the country in which they are issued. It is mainly a primary market (i.e. for the initial raising of debt finance). It is also a secondary market (dealing in debt already issued) but there is not so much of this – most holders keep the bonds until maturity.
When issuing new bonds there will often be underwriters (just as when issuing shares) who agree to take up bonds left unsold. Revolving underwriting when the facility continues to exist as opposed to being just for one specific issue.
I do not know which text you are using, but this is yet another statement that is way too much for the exam. I think you would be better off using our lectures and/or the ACCA’s own free study text in their Study Hub, and then using past exam questions!!
Thank you for the explanation..I’m sorry as my tutor teaches from Kaplan text, had to follow it and clear some tricky things written in it..
Thanks again
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