medium-term note: abbreviation of English Medium-term Notes. Medium-term notes refer to notes with a maturity of 5-1 years. When a company issues medium-term notes, it usually arranges a flexible issuance mechanism through the contractor manager. Through a single issuance plan, it can issue notes with different maturities for many times, which is more suitable for the company's financing needs. The medium-term notes issued in the European Eurocurrency market are called European medium-term notes (EMTNS). < P > In 1981, Merrill Lynch issued a medium-term note. Later, Ford Company, as the first non-financial institution, also issued medium-term notes. Asset-backed notes, a pioneering work of international finance, was born.

editing this paragraph, the central bank studies the introduction of medium-term notes

After the introduction of short-term financing notes, another tool for the central bank to expand direct financing-medium-term notes is also in the pipeline. At the 28 annual working meeting of the central bank held on January 3, it was reported that the central bank would innovate direct financing products and research and develop medium-term notes (notes with a term of 3-5 years) that can realize direct financing of enterprises.

The central bank pushes for direct financing

Just as short-term financing bills are substitutes for short-term loans within one year, medium-term notes are expected to be substitutes for medium-term loans with a term of less than five years. The industry predicts that if the medium-term notes can be launched in 28, the impact on enterprises and banks will be severe, especially in the context of the tight monetary policy implemented by the central bank.

from the development history of short-term financing bills, the development potential of medium-term bills is huge. As a tool of direct financing, short-term financing bonds have gone through more than two years since they were listed in 25, and their circulation and scale have greatly increased. By the end of November 27, the number of short-term financing bonds issued in the market had reached 565, and the total amount of issuance had exceeded 75 billion, far higher than the issuance scale of other corporate bonds. The development of short-term financing bonds provides enterprises with a means of direct financing, which has played a certain role in changing the imbalance between direct financing and indirect financing in China. At the same time, it is also conducive to improving the transmission mechanism of monetary policy, maintaining the overall stability of finance and promoting the comprehensive and coordinated development of financial markets. Short-term financing bonds are increasingly becoming an important part of the domestic money market.

According to industry analysis, under the tight monetary policy environment, the proportion of direct financing is expected to continue to expand driven by short-term financing bills and medium-term bills to be introduced. At the annual working meeting of the central bank, the central bank indicated that it would continue to raise the deposit reserve ratio and open market operations to increase hedging liquidity, strengthen window guidance, guide commercial banks to control credit supply, and curb the monetary creation ability of the banking system. Undoubtedly, the tightening policy of the central bank will prompt enterprises to consider more short-term financing bills and medium-term bills in financing.

editing this paragraph of medium-term notes officially launched

After many days of preparation, the first batch of 39.2 billion yuan of medium-term notes was issued by tender on the 22nd, officially appearing in the bond market. With abundant funds in the market and high desire for institutional allocation, investors showed high investment enthusiasm for the eight medium-term notes issued by the first batch of seven issuers.

However, after the first batch of issuers with higher credit ratings, will more enterprises with different credit ratings quickly join the issuing team of medium-term notes, which will put pressure on the market and make some investors keep a calm and cautious investment attitude while being enthusiastic.

specific issuance

issuer's issuance amount (RMB 1 million), term, payment date and value date, rating, lead underwriter's issuance method

The Ministry of Railways issued a tender at an interest rate of RMB 4.5 billion from AAA Construction Bank and Industrial and Commercial Bank of China on April 24, 5 3

The Ministry of Railways issued an interest rate of RMB 4.5 billion from AAA Construction Bank on April 24, 15 5. Industrial and Commercial Bank of China 1.5 billion yuan interest rate tender

China Telecom April 23, 1 3 AAA Industrial and Commercial Bank of China, CITIC Securities bookkeeping filing

China Communications Construction April 23, 253 AAA Bank of Communications bookkeeping filing

Sinochem Group April 23, 1995 AAA CITIC Securities, Bookkeeping of CITIC Bank

Bookkeeping of China National Nuclear Corporation AAA China Merchants Bank on April 23, 18 5

Bookkeeping of COFCO AAA CITIC Bank and CITIC Securities on April 23, 15 3

Bookkeeping of Minmetals Group AAA China Everbright Bank on April 23, 15 3

Editing the bidding interest rate range of this paragraph

According to the first financial report, According to the tender documents of the first batch of medium-term notes published by the Ministry of Railways, the first phase of the medium-term notes of the Ministry of Railways has a three-year term, the issuance scale is 5 billion yuan, and the bidding interest rate range is set between 5.8% and 5.1%. The second phase of medium-term notes has a five-year term, with a circulation of 15 billion yuan, and the bidding interest rate ranges from 5.28% to 5.3%.

Analysts said that among the seven enterprises, the Ministry of Railways and China Telecom are the best qualified enterprises, so their issuance interest rates may be relatively low, and the issuance interest rates of other enterprises may be slightly higher.

Six other companies will issue medium-term notes today, totaling 19.2 billion yuan. Among them, China Telecom, Communications Construction, COFCO and China Minmetals will issue three-year medium-term notes of 1 billion yuan, 2.5 billion yuan, 1.5 billion yuan and 1.5 billion yuan respectively, and China National Nuclear Corporation and Sinochem Group will issue five-year medium-term notes of 1.8 billion yuan and 1.9 billion yuan respectively.

at present, the market predicts that the yield of 3-year medium-term notes may be around 5.1%~5.15%, and that of 5-year notes may be around 5.4%~5.5%.

major investors in editing this paragraph

At present, only commercial banks, credit cooperatives, securities companies and finance companies can buy medium-term notes. Commercial banks should be the major investors in this week's medium-term notes, which are more sensitive to taxes and less sensitive to liquidity. However, it should also be noted that the demand for medium-term notes from future funds and insurance is also great.

institutions that can invest in medium-term notes at present

reasons for whether institutions can invest

tax sensitivity and liquidity sensitivity

whether commercial banks are-high and low

whether insurance companies have not released unsecured corporate bonds, the investment restrictions are low and low

whether funds are waiting for the CSRC to announce that the investment authority of new varieties is low and high

whether securities companies are-high and high

whether credit cooperatives are-high and high

. > editing the market impact of this paragraph

Medium-term notes have obvious substitution effect on medium-term loans of banks. Once customers with high credit quality transfer to medium-term notes for financing, commercial banks will face the threat of erosion of profits from traditional asset business, thus forcing commercial banks to carry out profound transformation, actively adjust customer structure and business structure, improve risk pricing ability, and seek new customers and new businesses with matching risks and benefits, so as to adapt to the situation that the proportion of direct financing increases and the relative scale of loans shrinks.

in terms of investment strategy, allocation institutions can still pay attention to the trend of medium and long-term treasury bonds on the premise that the bond market is still improving in the future, and trading institutions can also increase the investment ratio of medium and long-term treasury bonds to obtain the spread income under the bond bull market. From the perspective of relative value, the investment value of credit products such as corporate bonds, corporate bonds and AA short-term financing is higher, and institutions such as funds and insurance can continue to increase the proportion of credit products.

There are concerns about the supply in the market after editing this paragraph

According to shanghai securities news, as the first batch of enterprises are large state-owned enterprises with high qualifications, high credit ratings have provided good support for their issuance. Therefore, excluding this factor, if the issuer's qualification declines and the issuance scale increases substantially in the future, it may cause the interest rate of medium-term notes to move up, which also leads to the calm consideration of the market's warm welcome to medium-term notes.

according to the issuance plan, all the eight medium-term notes unveiled today are unsecured, and the main body rating is AAA. Some market participants believe that judging from the pilot batch of products, it is expected that the next development of the medium-term notes market is more inclined to guide enterprises with higher qualifications to enter. As a kind of short-term financing bonds with the same nature but shorter term, it will continue to develop towards the trend of diversification of issuers, helping more enterprises with low credit rating to complete short-term direct financing.

However, some fund managers are not so optimistic, thinking that the interest rate of medium-term notes may go up in the future, and investment is also risky. His reason is that the current financing cost of medium-term notes is much lower than that of bank loans, and a moderate increase in future coupon rates is acceptable to issuers. In addition, with the increase of supply and the decline of issuer's qualification in the future, it will put pressure on the rate of return. This should be vigilant for investors.