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 ?
Holders of 20 different bonds with an aggregate principal amount of around EUR25 billion, issued as part of Greece's 2012 debt restructuring, have agreed to swap them for five new benchmark issues. The participation rate of close to 86% suggests the exchange will achieve its aim of improving liquidity in Greek sovereign bonds, supporting future market access.
Benchmark issues are usually a minimum of $500 million.
The EIB is a regular issuer with a strong, long-term commitment to the sterling market, gradually building up large, liquid benchmark issues. The tap brings the bond maturing in February 2019 to around GBP4.5bn, making it the EIBs largest sterling benchmark outstanding.
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.