What's the difference between medium-term notes and corporate bonds?

Medium-term notes are a unique corporate debt instrument, which is continuously issued to investors through the issuer's agency. Investors can choose several terms: 9 months-1 year, 1 year-18 months, 18 months -2 years, and so on until 30 years. Corporate bonds are bonds issued by joint-stock companies to raise funds from the public. Securities that show the creditor's rights of a company are called corporate bonds. The issuance of corporate bonds shall be decided by the board of directors, and a prospectus shall be prepared and submitted to the competent authority for approval.

The differences between medium-term notes and corporate bonds are as follows:

1. Auditors are different. Corporate bonds are audited by the National Development and Reform Commission, and medium-term notes are audited by the Dealers Association.

2. The strictness of the audit is different, and the audit of corporate bonds is looser than that of medium-term notes.

3. The scale of issuance is different, and corporate bonds are usually issued in full at one time, with a large scale; Medium-term notes are usually issued many times, and the amount of issuance is small.

4. With different terms of issue, the contract terms of corporate bonds are standardized, but medium-term notes are not. Not only the medium-term notes registered at the same time can have different terms and pricing.

5. Corporate bonds are generally underwritten by investment banks due to different issuance methods. Medium-term notes are issued in many ways.

Tips: The above instructions are for reference only and do not make any suggestions. There are risks in entering the market, so investment needs to be cautious. Before you make any investment, you should make sure that you fully understand the nature of the investment and the risks involved, and then judge whether to participate after detailed understanding and careful evaluation.

Reply time: 202 1-04-08. Please refer to the latest business changes announced by Ping An Bank in official website.

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