Housing loans are striking examples of target investment loans, also they are profitable (the mixed covering); medium-term (long-term); repaid in monetary and natural (housing) forms.
These traditional forms of short-term obligations have a number of similar lines with long-term, such as a constant interest rate, procedure of registration and a competitive basis for placement. Such conditions do supershort-term loans (less than 90 days) unattractive.
On the other hand, release short-term the obligation allowed to fulfill the mechanism of attraction of real money and to create the financial instrument available to both professional participants, and private investors.
First, the accurate and competently prepared investment payments at the issuer were absent. The regional authorities, as a rule had no reliable information on a financial and economic condition of the region, and, as a result, issue programs did not consider deficiency of monetary resources, payback periods of projects, lack of necessary technological chains.
The secondary market of VODO and VOO works as off-exchange. Authorized dealers independently declare quotations of VODO and VOO, register and make out transition of the property rights at specialized registrar (a registry holder of VODO and VOO).
The indisputable leader in the sphere of municipal securities are the USA. In this country throughout nearly two centuries states and local authorities issued securities. Here many tools of the market of municipal securities which with success were used subsequently in another developed and developing countries were constructed.
CCC – at the moment exist signs of that payments on the main sum and percent will be delayed and only the favorable confluence of economic circumstances will allow to pay a debt in time. In case of adverse combination of circumstances of the probable termination of payments.
Some municipalities issue short-term obligations with discount (by analogy with federal treasury obligations (treasury bills). The following is distinguished from short-term obligations:
The consultant is attracted by administration for assistance in development of the financial plan of the region (the city. He helps the issuer to define his financial requirements and to place priorities, and also helps to develop alternative ways of financing of the program of the issuer.
Successful carrying out a loan and implementation of regional social and economic projects due to investment of the funds raised on a loan increases authority of administration at the population of the region and at federal authorities.
By results of market research the capacity of future securities market of loans is defined, the general scheme of the forthcoming release of a loan is under construction, the main characteristics of issued securities are developed.
The trade system assumes the organization of the auction, registers transactions, makes settlement documents and transfers them to settlement system and depositary. The trade system is obliged to provide to dealers equal opportunities to enter and execute demands for purchase and sale of obligations, and also to receive information on the course of the auction.
The trade system has to know how many remained means at the dealer which he can use for purchase of obligations. In case it is not enough of them for an offer covering, the trade system blocks input of it and all subsequent proposals of the dealer.
Affected the VDO market and seasonal fluctuations of behavior of subjects of the market. One (the professional participant of RTs it was necessary to bring into accord with standards structure of the assets, another (to potential investors) – to spend holidays.
At a loan form choice crucial importance has, on the one hand, its cost, i.e. that a payment which the local authority has to pay for attracted resources, and with another - existence in the necessary sizes of financial resources in the relevant market of the capitals.
On the one hand, release of short-term obligations allowed to fulfill the mechanism of attraction of real money and to create the financial instrument available to both professional participants, and private investors.