Special Session C: Bond Market Development: Models & Practices

Abstract

The session will examine models and practices of fixed income securities market. The three speakers will look at different segments of the bond market in three countries and current status of each. The session will start with Dr. Hotchkiss's overview of the US bond market. She will discuss different segments of the US bond market, including Treasury Securities, Municipal Bonds, Mortgage and Asset-Backed Securities, Federal Agency Securities and Corporate Bonds. Mr. Berna will discuss the Canadian municipal bond market. Specifically, he will present the Municipal Finance Authority of British Columbia's (MF ABC) collective credit model. He will examine its features, its governance structure, and its operations. He wUl also present the results of a study by MF ABC with partnership of KPMG that showed how collective credit model reduces fundings for the Province of Quebec. The talk will conclude with other types of capital funding programs and financial products using the MFABC model. Dr. Byeon will present the current status and prospect of the Korean corporate bond market. He will present the changes in the market structure as well as an analysis of trends and developments of the Korean corporate bonds.