Medium Term Note

Medium Term Note

A Medium Term Note (MTN) is a debt note that usually matures (is paid back) in 5-10 years, but the term may be as short as one year or as long as 50 years. They're normally issued on a floating basis such as Euribor +/- basis points. When they are issued in a Euro-currency (say, Eurodollars or Euroyens), they are called "Euro Medium Term Notes".

Medium Term Note Program

The notes are usually connected to a Medium Term Note Program, which is a funding program used by issuers to receive bond debt funding on a regular and continuous basis. Their programs can include more than one issuer although the issues are independent up to a maximum amount authorised. The advantage to issuers is that they are not required to produce a full suite of legal documents each time they want to issue notes. Instead, a series of underlying documents are amended with each issue by a pricing supplement which sets out the terms of each specific issue of notes. This makes access to debt funding easier and cheaper. Programs are registered in a supervisory authority such as the London Stock Exchange and the Luxembourg Stock Exchange.

Most large companies have established Medium Term Note Programs to finance their medium term financing needs. Countries also use these programs to access the capital markets.

Some issuers such as investment banks like Morgan Stanley and Merrill Lynch have adapted their Medium Term Note programs to issue more sophisticated notes such as securities linked to the share price of public companies (equity-linked notes) or the price of share indices such as the FTSE 100 or NASDAQ (index-linked notes).

References

* [http://www.realcorporatelawyer.com/faqs/faqmtn.html Description of Medium Term Note programs and how they work from Realcorporatelawyer.com]

External links

* [http://www.investopedia.com/terms/m/mtn.asp Medium Term Note - MTN]


Wikimedia Foundation. 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • medium term note — (MTN) A bearer negotiable debt security with a maturity of more than one year issued in the international capital markets to Eurobond investors, either as a single issue or as a series of issues under a medium term note programme. MTNs are… …   Law dictionary

  • medium-term note — (MTN) A bearer negotiable debt security with a maturity of more than one year issued in the international capital markets to Eurobond investors, either as a single issue or as a series of issues under a medium term note programme. MTNs are… …   Law dictionary

  • Medium Term Note — Unter Medium Term Notes (MTN) versteht man mittelfristige Schuldverschreibungen mit einer Laufzeit von meist 1 bis 10 Jahren. Inhaltsverzeichnis 1 Hintergründe 2 US Medium Term Note 3 European Medium Term Note …   Deutsch Wikipedia

  • Medium term note — A medium term note (MTN) is a debt note that usually matures (is paid back) in 5–10 years, but the term may be less than one year or as long as 50 years. They can be issued on a fixed or floating coupon basis. Floating rate medium term notes can… …   Wikipedia

  • medium-term note program — (MTN program) USA medium term notes are usually issued in connection with a medium term note program, a funding program used by issuers to receive bond debt funding on a regular and continuous basis. Their programs can include more than one… …   Law dictionary

  • medium-term note retail — ( MTNR) Medium term note designated for retail investors. For example, at Fannie Mae, it means that the bond is designated for individual investors that is underwritten through a dealer versus issuing through a program, like Investment Notes or… …   Financial and business terms

  • Medium Term Note - MTN — 1. A note that usually matures in five to 10 years. 2. A corporate note continuously offered by a company to investors through a dealer. Investors can choose from differing maturities, ranging from nine months to 30 years. 1. Notes range in… …   Investment dictionary

  • medium-term note — MTN An unsecured note issued in a eurocurrency with a maturity of about three to six years …   Accounting dictionary

  • medium-term note — MTN An unsecured note issued in a eurocurrency with a maturity of about three to six years …   Big dictionary of business and management

  • Euro medium term note — (EMTN) See medium term note (MTN) . Related links Eurobond EMTN …   Law dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”