I would like to raise a question regarding bond issuing. In the perspective of the treasurer in a company, in case that I have to raise money to operate the company. a lot of money for next year… how do we react to the outside financiail variation? like… 1) The interest rate is expected to be moving up 2) The overall economy will be restored 3) The FX rate will be improved (vs. U$ and my country is not US) (maybe it should be related with interest rate for both countries) 4) High inflation is expected 5) Fluctuating possibility in overall economy and so many other situation possible… When we confront with above each situation, what method do we have to use in raising imoney? for example there are ways like… 1) Issuing a bond (primary market) 2) Issuing a bond (secondary market) 3) Issuing ABS 4) CP 5) Bond with warrant 6) Issuing foreign bond (gathering foreign currency) or maybe there are another ways but I only could remind of those kind now… So please advise me … 1. the situation expected (any) - then 2. most appropriate reaction . + reason Thanks.
When you say “expected” (as in 1 and 4, above) you have to differentiate between what the market (yield curve) expects and if you, as an analyst, have a different expectation. If, for instance, you have reason to believe interest rates will be rising sharply over the next several years but the yield curve for some reason disagrees with you, you should issue long term bonds to raise capital. But before doing that, you should check and peer-review your analysis, because whatever the yield curve is actually doing is probably pretty efficient.