Morgan Stanley, A Guide to Instruments, Conventions and Market Institutions

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Please refer to important disclosures at the end of this report.
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Strategy
Fixed Income Research Sovereigns
Latin America
Javier Romo (212) 761-0658
Claudia Castro (212) 761-0676
Karim Abdel-Motaal (212) 761-2763
Review December 16, 2002
A Guide to Instruments, Conventions and Market Institutions
Introduction
The Chilean financial market has proven to be one of the
most resilient in Latin America. It is a product of the oldest
and most comprehensive structural reform effort in the
region. Since the last major crisis � the bank restructuring of
1982 � Chile has been on a secular institutional strengthening
path. In the late 1990s, the infamous capital inflow
restrictions were relaxed and the CLP has been free floated.
In 2001, liberalization and tax incentives were enacted as part
of a reform package that gave foreign investors free access to
the market and eliminated the capital gains tax. Still, the
Chilean market remains small. Its illiquidity is currently the
primary impediment to foreign investor participation. The
market is, however, fairly complete in terms of range and
depth of instruments.
There are a number of trends we expect to see in the Chilean
market over the next few years:
1. Return of capital inflows. We expect the effects of a
decade of Latin crises and terms-of-trade shocks to
dissipate and Chilean regulators to have to contend once
again with the policy challenge of intermediating large
capital inflows in a small open economy. While a return
to the capital inflow taxes that characterized the Chilean
market�s history is unlikely, regulatory attempts to
smooth inflows will probably return, along with the
return in inflows
2. Increased integration with the international financial
market. The next decade will likely see the admission of
Chile into the North American Free Trade Agreement
(NAFTA). This event would likely trigger a rapid
integration of the Chilean financial market with that of
the US. The recent trade agreement between Chile and
the US represents a first step in that direction. Because of
the small size of the Chilean economy, the migration of
liquidity to the offshore market is a distinct possibility.
One example, we expect further development of the swap
market.
3. De-indexation of the financial market. The role of the
UF inflation index (the Chilean CPI index created in
1967, defined later) and real securities denominated in it
should decline over time as Chile�s low inflation
experience becomes more deeply rooted and the market
becomes more integrated with that of the US, in which
nominal securities predominate.
Foreign Exchange and Derivatives
Spot. The Chilean peso (CLP) was introduced on September
29, 1975, replacing the escudo. The CLP currently floats
freely. It has gone through virtually the entire menu of
exchange rate regimes over the past 30 years. The crawling
peg regime lasted the longest � from August 1984 until
September 1999. The CLP is not convertible. All foreign
exchange transactions must be registered with the Central
Bank and can only occur between accredited institutions.
The onshore market is open between 9:30 a.m. and 4:30 p.m.
(winter) and 5:30 p.m. (summer) local time. It is conducted
in several electronic and open trading sessions. The CLP is
traded in two different markets. The formal market defined
by Chile�s Central Bank uses an agreed rate (�Acuerdo�),
which is fixed by the Central Bank, and an observed
(�Observado�) rate reflecting commercial transactions in the
formal market. The second market is the parallel one, also
legal, and used for all transactions not defined by the Central
Bank.
Exhibit 1
CLP Evolution
400
450
500
550
600
650
700
750
800
Dec-95 Sep-97 Jun-99 Mar-01 Dec-02
Source: Bloomberg
Comment
Chile Local Markets
Sovereigns
Chile Local Markets � December 16, 2002
Please refer to important disclosures at the end of this report.
Page 2
FX forwards. FX forwards are traded onshore and offshore,
though the offshore market is restricted. The market is fairly
liquid, with most of the trades done for tenors of three
months or less. The daily volume averages $100 million.
Offshore forwards are non-deliverable (NDF), as the
currency cannot be converted. There are also forwards of
Unidades de Fomento (UFs), which are USD/CLP contracts
denominated in UFs instead of CLP. The UF is an inflation-
indexed unit denominated in CLP. Projections of the UF for
each day of the forthcoming month are published by the
Central Bank on the business day following the monthly CPI
release (generally the 9th of each month). The UF unit has a
one-month lag to the consumer price index. UF FX forwards
are non-deliverable, settled in cash (USD) using the Dolar
Observado and the daily UF level. Forwards exist in the
standard tenors: 1-month to 12-months, highly concentrated
in the shorter tenors.
UF FX forwards are governed by the real equivalent of
covered interest rate parity:
FUSD/UF = SUSD/CLP / SUF/CLP * [(1+rUF x d/360) / (1+rUSD x d/360)]
where,
FUSD/UF are the forward points
SUSD/CLP is the spot FX rate
SUF/CLP is the UF conversion rate into CLP
d is business days
rUF, rUSD are the UF real and US dollar interest rates.
Fixed Income and Derivatives
In 2001, the government introduced a capital markets reform
law that aimed to facilitate access and promote Chilean local
markets. The result is that foreign institutional investors in
fixed income now pay a tax of 4% on interest and are exempt
from the tax on capital gains.
Public Debt
The fixed income market includes both public and private
debt. Chile�s public debt is currently modest due to the
successful stabilization of the last few years. Budget
surpluses have reduced the stock of public debt to all-time
lows. The government generally highlights the net public
debt stock, which subtracts public-sector assets from the
gross number. The federal government�s net public debt was
$10.6 billion as of June 2002. The actual gross traded public
debt stock stood at a face value of over $19 billion, or 16.6%
of GDP, as of October 2002, as reported by the Central Bank.
The public debt is the obligation of the Treasury and the
Central Bank, although the Central Bank is the issuing agent
in both cases.
Exhibit 2
Public Debt Composition and Evolution
US$Bn
9
10
11
12
13
14
15
Dec-
90
Dec-
91
Dec-
92
Dec-
93
Dec-
94
Dec-
95
Dec-
96
Dec-
97
Dec-
98
Dec-
99
Dec-
00
Dec-
01
Mar-
02
Jun-
02
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%Debt / GDP
Debt Stock
Note: As of June 2002.
Source: Ministerio de Hacienda
The primary market is open to all registered financial
institutions. The government does not release a regular
auction schedule. It announces only the intended total
issuance size for the upcoming month. PDBCs are issued on
a regular basis (twice a week) as a monetary regulation
instrument. The short end of the curve is filled with CLP
instruments, while longer maturities are generally UF
denominated.
Exhibit 3
Public Debt Amortization Schedule
US$Bn
0
1
2
3
4
5
2002 2003 2004 2005 2006 2007-
20011
2012-
2016
2016 and
after
Note: As of October 2002.
Source: Chile Central Bank
Sovereigns
Chile Local Markets � December 16, 2002
Please refer to important disclosures at the end of this report.
Page 3
PRCs (Pagares Reajustables del Banco Central de Chile
con Pago en Cupones) are long-dated inflation-indexed
floaters. They have coupon and principal denominated in
inflation-indexed units (UF). The PRC cash flows are re-
reset according to realizations of UF inflation. The bonds
amortize principal on each coupon date. Coupons are paid
semi-annually and include interest and a partial principal
payment. These bonds are issued in maturities of four to 20
years.
PRCs were historically issued through a periodic auction
system. They are no longer issued and are slowly being
replaced by the Central Bank�s newest securities: BCUs
(Bonos del Banco Central.) They came in denominationsof
UF500, 1,000, 5,000 and 10,000. In the secondary market,
the bonds trade on the basis of real yields up to 2 decimals.
Normal bid-ask spreads are 10 bp. The face value of PRCs
outstanding is UF271 million ($6.4 billion) or about 34% of
the total stock of debt, which makes this the largest Central
Bank issued security. The price of the security is defined
below:
�
= +
=
n
i
t
i
iy
A
P
1 )1(
where,
P is the price of the security
 y is the yield to maturity
Ai cashflow at i
ti is the time remaining to payment of Ai
n is the number of payments remaining
PRDs (Pagares Reajustables en Dolares del Banco
Central) were first issued in 1998. This instrument is similar
to PRCs, with the main difference being that it is
denominated in US dollars and does not amortize. It is a
semi-annual coupon-bearing security, with a single bullet
principal payment at maturity. These bonds are issued in
maturities of two to 20 years. PRDs are issued and placed
through an auction. Issues come in denominations of
$50,000-$1,000,000. Financial institutions authorized to
operate in the primary market can participate in the auctions
only if they are registered with the Open Market Transaction
System (SOMA). In the primary market auction, bids are
entered in yield terms. In the secondary market, the bonds
trade on the basis of real yields up to 2 decimals. Normal
bid-ask spreads are 10 bp.
There were $3.7 billion face of PRDs outstanding as of
October 2002. This is 19 % of the total public debt stock.
The price of the security is defined below:
�
�
�
�
�
�
+
+
+
= �
=
n
i
t
i
t ii y
c
y
FaceP
1 )1()1(
where,
P is the price of the security
y is the yield to maturity
ci is the ith coupon payment
ti is the time remaining to payment of ci
n is the number of coupon payments remaining.
PDBCs (Pagares Descontables del Banco Central �
TNotes) are zero-coupon securities denominated in pesos.
They range in maturity from 1 month to five years. PDBCs
are issued and placed directly in the open market through
auction system and window sales. They come in
denominations of CLP5, 50, 100 and 200 million. Financial
institutions authorized to operate in the primary market can
participate in the auctions only if they are registered with
SOMA. In the primary market auction, bids are entered in
yield terms. In the secondary market, the bonds trade on the
basis of nominal yields up to 2 decimals. Normal bid-ask
spreads are 10 bp.
The stock of PDBCs as of October 2002 stood at CLP 3,300
billion ($4.5 billion), or 24% of the total as of October 2002.
The price of the security is defined below
ty
FaceP
)1( +
=
where,
P is the price of the security
y is the yield to maturity
t is the time to maturity
PRBCs (Pagares Reajustables del Banco Central) are
zero-coupon securities denominated in inflation-indexed
units (UF). These bonds are issued in maturities of up to five
years and the government must not exceed a maximum
outstanding face value of UF300 million. PRBCs are issued
and placed directly in the open market through auction
system and window sales. Issues will have denominations of
UF 500, 1,000, 5,000 and 10,000. Financial institutions
authorized to operate in the primary market can participate in
the auctions only if they are registered with SOMA. In the
primary market, auction bids are entered in yield terms. In
the secondary market, the bonds trade on the basis of
nominal yields up to 2 decimals. Normal bid-ask spreads are
10 bp.
Sovereigns
Chile Local Markets � December 16, 2002
Please refer to important disclosures at the end of this report.
Page 4
The stock outstanding as of October 2002 was UF 5.6 million
($0.1 billion) or 1% of the total.
ty
FaceP
)1( +
=
P is the price of the security
y is the yield to maturity
T is the time to maturity
CEROs (Cupones de Emision Reajustables Opcionales en
UF o Dolares). CEROs represent coupons of PRCs and
PRDs traded separately. A CERO is different from a �strip�
in that it is literally a �single� coupon, not a strip of them.
They are bearer securities, denominated in UFs and dollars,
respectively. The maturities of these securities are the same
as those of the coupons of the original instruments. UF
CEROs in UF come in denominations of UF500, 1,000,
5,000 and 10,000. USD CEROs come in denominations of
$50,000, 100,000, 500,000 and 1,000,000.
The total outstanding as of October 2002 stood at UF68.7
billion plus $830 million ($2.4 billion), over 13% of the total
public debt stock. The price for the security is defined as:
ty
couponP
)1( +
=
where,
P is the price of the security
 y is the yield to maturity
t is the time to maturity.
BCPs, BCUs and BCDs (Bonos del Banco Central en
pesos, UF o dolares). BCs are Central Bank instruments
denominated in CLP (BCPs), UF (BCUs) and dollars
(BCDs). The bonds were introduced in September 2002 to
replace existing instruments with more efficient bullet bonds
without amortization and to extend and complete the yield
curve. BCPs will have maturities of two and five years, and
will start replacing two-year PDBCs. Five-, 10- and 20-year
BCUs will replace PRCs of eight and 20 years. Finally,
BCDs will be issued in two- and five-year maturities to
replace the two-, three- and four-year PRDs). Denominations
are as follows: BCPs: CLP5, 50, 100 and 200 million.
BCUs: UF 500, 1,000, 5,000 and 10,000. BCDs: $50,000,
100,000, 500,000 and 1,000,000. The Central Bank may also
issue different denominations at its discretion. The bonds
will be expressed in their respective units and their coupons
will be paid in CLP at corresponding coupon dates and at
corresponding UF or dollar values � whatever the
currency/unit of denomination.
Total outstanding as of October 2002 stood at about $1.8
billion or 9.5% of the total public debt stock. The price of the
security is defined below:
�
�
�
�
�
�
+
+
+
= �
=
n
i
t
i
t ii y
c
y
FaceP
1 )1()1(
where,
P is the price of the security
y is the yield to maturity
ci is the ith coupon payment
ti is the time remaining to payment of ci
n is the number of coupon payments remaining.
PTFs (Pagares Reajustables del Banco Central de Chile
con Tasa de Interes Flotante) are floating-rate obligations
of the Central Bank denominated in inflation-indexed units
(UF). Both the UF and the yield over the UF are floating,
unlike the PRC, where the real yield is fixed. The PTFs are
re-adjustable according to variations of UF and are payable
to bearer. They are amortizing. Coupons are payable semi-
annually. They pay interest equal to a fixed percentage of the
preceding 15-day weighted average of the TIP 90-365 rate
(Tasa de Interes Promedio 90-365). The TIP90-365 will be
an average of the annual rate of re-adjustable UF deposits,
with terms between 90 days and one year, paid by financial
system participants and weighted by the amount of each
deposit in relation to all deposits. The TIP90-365 is
published by the Central Bank. These bonds are issued in
maturities greater than one year and up to 15 years, and the
maximum outstanding face allowed by the government is
UF100 million.
PTFs are issued and placed through a periodic auction
system. Issues will have denominations of UF500, 1,000,
5,000 and 10,000. Financial institutions authorized to operate
in the primary market can participate in the auctions only if
they are registered with SOMA.
The stock of PTFs as of October 2002 stood at UF84,000 ($2
million), not a significant amount of the public debt stock.
Private Debt
Debt other than public amounts to about one-third of the total
traded debt in the local market. Corporate debt, the first
major component of non public debt, is issued in CLP, USD
and UF, and generally has maturities greater than one year.
The second major component is Letters of Credit, which are
Sovereigns
Chile Local Markets � December 16, 2002
Please refer to important disclosures at the end of this report.
Page 5
issued by banks, finance companies and the Housing and
City Planning Administration.These are issued in UF, pesos
or foreign currency, and also have maturities of more than
one year.
Fixed Income Derivatives
Attempts to develop the market for futures and options have
met with only mixed success. One of the main limitations is
the secondary market illiquidity of the underlying bonds,
particularly longer-dated ones. Another contributing factor is
that short selling is taxed at a capital gains rate of 15%.
Domestic Market Participants
The Chilean financial market�s main participants are banks,
pension funds, institutional investors and, to a lesser extent,
insurance companies.
Exhibit 4
Debt Composition
Corporates
18%
Credit Letters
16%
Public Debt
66%
Source: BCC
Banks
The Chilean banking system is populated by domestic and
international institutions. Up until December 2001, there
were 27 institutions in the market, of which nine were local
private banks, 16 were foreign banks, one a state bank and
one a financial association. The total assets of the banking
system stood at $65.8 billion and its net equity was US$4.9
billion. Banks perform conventional commercial banking
activities and, through affiliates, investment banking ones.
Current law states that, in the future, activities from affiliates
will be directly performed by the bank with previous
authorization from the SBIF (Superintendencia de Bancos e
Instituciones Financieras), the state�s regulatory agency.
Exhibit 5
Consolidated Banking System Balance Sheet ($MM)
As of December 2001
Assets Liabilities
Cash 2,636 Demand Deposits 6,740
Securities 46,130 Time Deposits 29,158
Total Investments 12,236 Mortgage Liabilities 9,674
Fixed Assets 1,282 Liabilities with Locals 1,348
Other 3,497 Liabilities with Foreigners 2,316
Other 11,649
Total Liabilities 60,885
Total Assets 65,781 Net Equity 4,896
Source: SBIF
Mutual Funds
The mutual fund industry in Chile is governed by the SVS
(Superintendencia de Valores y Seguros), an autonomous
institution that operates through the ministry of finance. The
industry has been growing. The number of funds has tripled
in the last five years, and assets under management grew
78% in the last three years to CLP 4,183 billion ($6 billion)
as of June 2002. This represents about 8.5% of GDP and is
still small. Of the stock of assets under management, around
95% is invested in bonds. Foreign participation in the mutual
fund industry is high. The top fund managers, measured by
assets under management as of 2001, were Santiago,
Banchile and Santander.
Exhibit 6
Mutual Fund Assets
CLP bln
500
1,500
2,500
3,500
4,500
Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Jun-02
Source: SVS
Pension Funds
The pension system in Chile was reformed in 1980,
establishing a new fully funded system based on individual
contributions through privately administered funds
(Administradoras de Fondos de Pensiones � AFP). Pension
funds are the main participants in the Chilean financial
system. The government guarantees and regulates the system
through a dedicated agency: Superintendencia de
Sovereigns
Chile Local Markets � December 16, 2002
Please refer to important disclosures at the end of this report.
Page 6
Administradoras de Fondos de Pensiones (SAFP).
Retirement pensions are financed through an automatic
deposit equal to 10% of the payroll income of each worker,
and made in UFs .
Exhibit 7
Pension Fund Assets Composition
Public Debt
35%
Mortgage backed 
securities
13%
Mutual Funds
2%
Financial 
Institutions stock
1%
Financial 
Institutions bonds
2%
Time Deposits
18%
Foreign bonds
4%
Other
0%
Stock
10%
Foreign mutual 
funds
9%
Bonds and 
debentures
6%
Note: As of December 2001.
Source: SAFP
The private pension system had over CLP 23,000 billion
(about $33 billion) in assets under management as of
December 2001. This is about half of GDP. About one-third
of the assets were invested in public debt, particularly in
Central Bank PRCs. The funds� investments tend to
concentrate in the longer maturities (over eight years). They
are nonetheless important participants in short-dated
instruments (for cash-management purposes). In August
2002, a new law was passed that increased the variety of
funds from two to five and allowed more investment in
variable income instruments according to the chosen fund.
Funds are named A through E, with A allowing the largest
percentage of variable income assets (80%) and E being
restricted to variable income investments.
Exhibit 8
Pension Fund Assets Since Inception (in CLP bn)
0
5000
10000
15000
20000
25000
Source: SAFP
Exhibit 9
Pension Fund Investment Guidelines
1. Instruments of the Central Bank, the 
Treasury, other instruments guaranteed by 
Chile's government
40% 40% 50% 70% 80%
2. Time deposits, bonds and other titles 
representative of inflows issued by financial 
institutions.
40% 40% 50% 70% 80%
3. Titles guaranteed by financial institutions 40% 40% 50% 70% 80%
4. Letters of credit issued by financial 
institutions 40% 40% 50% 60% 70%
5. Bonds of Public and Private firms 30% 30% 40% 50% 60%
6. Convertible bonds of Public and private 
firms 30% 30% 10% 5% ---
7. Stock 60% 50% 30% 15% ---
8. Stock of real estate companies 60% 50% 30% 15% ---
9. Fees of investment funds plus quota of 
local mutual funds. 40% 30% 20% 10% ---
10. Credit titles and other instruments with 
maturity less than 1 year. 10% 10% 10% 20% 30%
11. Foreign Instruments
12. Other public instruments authorized by 
Central Bank
37% 
provisional 
up to Oct-
2003
22% 
provisional 
up to Oct-
2004
18% 
provisional 
up to Oct-
2005
13% 
provisional 
up to Oct-
2006
9% 
provisional 
up to Oct-
2007
14. Operations containing repo agreements. 15% 10% 5% 5% 5%
15. Public and private debentures 30% 30% 40% 50% ---
16. Fees of local mutual funds 5% 5% 5% 5% ---
17. Subscription agreements and fees of 
investment funds 2% 2% 2% 2% ---
Instrument
Max Limits per Fund
Fund A Fund B Fund C Fund D Fund E
The sum of all the foreign investments from the same AFP 
through its various funds has a maximum of 20%.
Not less than 1% or more than 5%
13. Sum of investments in foreign currency 
without FX exposure protection
40% 25% 20% 15% 10%
Source: SUSEP
Insurance Companies
The insurance industry is regulated by the Superintendencia
de Valores y Seguros (SVS) and the Central Bank. Life
insurance is the most prevalent sector in Chile. This
translates into generally long-duration liabilities and long-
duration assets. Insurance companies therefore demand more
of the longer maturities in the market. Insurers� portfolios
Sovereigns
Chile Local Markets � December 16, 2002
Please refer to important disclosures at the end of this report.
Page 7
consist predominantly of public debt and mortgages.
Insurance company investible assets amounted to $12.4
billion as of December 2001. Fees have grown steadily as a
percentage of GDP, and stood at 4.2% of assets under
management at the beginning of 2002.
Exhibit 10
Composition of Assets Under Management for
Insurance Companies
Real Estate 
Invesments
17%
Stock
3%
Mortgage backed 
securities
22%
Time Deposits
2%
Bonds and 
debentures
20%
Public Debt
23%
Foreign 
investments
2%
Bank bonds
8%
Investment funds
1%
Other
2%
Source: SVS
Sovereigns
Chile Local Markets � December 16, 2002
Please refer to important disclosures at the end of this report.
Page 8
Appendix I: Chilean Fixed Income Instrument Descriptions
Instrument PRCs PRDs PDBCs PRBCs CEROs BCs
Complete Name Pagares Reajustables del
Banco Central de Chile con
Pago en Cupones
Pagares Reajustables en
Dolares del Banco Central
Pagares Descontables del
Banco Central
Pagares Reajustables del
Banco Central
Cupones de Emision Reajustables
Opcionales en UF o Dolares
Bonos del Banco Central en
pesos, UF o dolares
Type UF-denominated, coupon-
bearing, payable in CLP
USD-denominated, payable in
CLP
Denominated in pesos UF-denominated, payable in
pesos
UF/Dollar-denominated, CEROs
are coupons from PRCs and
PRDs
CLP-, UF-, USD-denominated,coupon-bearing, payable in
CLP
Issuer Central Bank Central Bank Central Bank Central Bank Central Bank Central Bank
Rating A1/AA A1/AA A1/AA A1/AA A1/AA A1/AA
Outstanding UF 281.2 million US$3.7 billion CLP 3,300 billion UF 5.6 million UF 68.7 million and USD 0.8
billion
CLP 265 billion, UF 12.1
million and USD 1.2 billion
Maturities 4 to 20 years 2 to 20 years Up to 5 years, must common
90 days and 1 year
Up to 5 years 2 to 20 years, same as maturities
from original instruments
2 to 5 years but can go up to
20 years
Coupon Semiannual Semiannual Zero coupon Zero coupon - Semiannual
Amortization Equal coupons including
interest and principal
Bullet Balloon Balloon Balloon Bullet
Daycount Actual/365 ISMA 30/360 Act/360 Act/360 Actual/365 Actual/365
Minimum
denomination
500 UFs US$50,000 5 million CLP 500 UFs 500 in UF, 50,000 in USD 5 million in CLP, 500 in UF
and 50,000 in USD
Taxation Foreign institutional investors
only pay a tax of 4% on interest
gains and are exempt from tax
on capital gain.
Foreign institutional investors
only pay a tax of 4% on interest
gains and are exempt from tax
on capital gain.
Foreign institutional investors
only pay a tax of 4% on interest
gains and are exempt from tax
on capital gain.
Foreign institutional investors
only pay a tax of 4% on
interest gains and are exempt
from tax on capital gain.
Foreign institutional investors only
pay a tax of 4% on interest gains
and are exempt from tax on
capital gain.
Foreign institutional investors
only pay a tax of 4% on
interest gains and are exempt
from tax on capital gain.
Primary Market
Agent Central Bank Central Bank Central Bank Central Bank Central Bank Central Bank
Issuance
frequency
Irregular Irregular Twice a week No predetermined auction
frequency
No predetermined auction
frequency
No predetermined auction
frequency.
Issue size Average 0.4 million on 8-yr,
0.8 million on 20-yr
10-100 million 10 to 150 billion 0.5 to 2 million Not predetermined. Not predetermined.
Allowed bidders Authorized Financial
Institutions
Authorized Financial Institutions Authorized Financial
Institutions
Authorized Financial
Institutions
Authorized Financial Institutions Authorized Financial
Institutions
Auction system Competitive, traditional and
interactive, where bidders will
be allowed to re-bid if their bid
is not in the pre-authorized
range.
Competitive, traditional and
interactive, where bidders will be
allowed to re-bid if their bid is not
in the pre-authorized range.
Competitive, traditional and
interactive, where bidders will
be allowed to re-bid if their bid
is not in the pre-authorized
range.
Competitive, traditional and
interactive, where bidders will
be allowed to re-bid if their bid
is not in the pre-authorized
range.
Competitive, traditional and
interactive, where bidders will be
allowed to re-bid if their bid is not
in the pre-authorized range.
Competitive, traditional and
interactive, where bidders will
be allowed to re-bid if their bid
is not in the pre-authorized
range.
Secondary
Market
Quote
convention
Yield Yield Yield Yield Yield Yield
Bloomberg
screens
CHILGB Govt CHPRD Govt CHPDBC Govt CHILTB Govt CHILGS Govt BCPCL/BCUCL/BCDCL Govt
Reuters screens 0#CLPRC 0#CLPRD=SN or =CE 0#CLPDBC3ML= / 1YL= 0#CLPRBC3ML= 0#CLCERO=CE 0#CLCENTRAL=SN
Source: Morgan Stanley, BCC, Bloomberg
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© 2002 Morgan Stanley
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