Bellwether Issue

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Bellwether Issue

A bond with a coupon that is close to market rates. Interest rates on bonds vary from time to time according to a number of factors, but are usually locked at issue. A bellwether issue is one with an interest rate very near to the prevailing rates, regardless of when it was issued. Bellwether issues are also called benchmark issues and perhaps, most commonly, current coupons bonds.
References in periodicals archive ?
Benchmark issues are usually a minimum of $500 million.
Benchmark issues are usually USD500m or more, the report noted.
A"Borrowing in 2008 is mainly to finance amortisations, provide benchmark issues, and maintain a level of government debt necessary for monetary policy purposes,A" said Standard and Poor's credit analyst Farouk Soussa.
Fourthly, recognizing the importance of setting longer-term government bond yield as the benchmark interest rate, the government has been committed to shifting its benchmark issues to 5-year KTBs, by increasing the proportion of annual 5-year KTB issuance.
Previously, such benchmark issues were outstanding 10-year JGBs at which large amounts changed hands on a value basis on any given day.
Treasury, Fannie Mae will announce bullet Benchmark issues one week prior to the pricing date.
Federico Molina, Director of Public Credit for Argentina, commented that the size and success of this deal signal the reopening of the market to large, liquid benchmark issues.
Given the news, we would expect all series in the Master Trust should trade on top of benchmark issues.