Concept and different types of government and municipal bonds; circulation guidelines

Straipsnyje trumpai apibūdinama Vyriausybės ir savivaldybių vertybinių popierių esmė. Autorius pateikia supratimą apie skolos vertybinių popierių rinką ir jos vietą, supažindina skaitytoją su pagrindinėmis obligacijų savybėmis (sąlygomis) bei detaliau apžvelgia šių finansinių instrumentų klasifikaciją. Greta labiausiai paplitusių obligacijų rūšių - standartinės, „palūkanų nemokančios“, indeksuojamos obligacijos ir obligacijos su „plaukiojančiomis“ palūkanomis straipsnyje nagrinėjamos ir kiek egzotiškesnės projektų obligacijos ir obligacijos su opcijomis. Paskutinioji straipsnio dalis skiriama apžvelgti pagal Vyriausybės ir savivaldybių vertybinius popierius nevykdymo ar netinkamo vykdymo atvejus aptarti „kolektyvinių veiksmų sąlygas“.Article is the first work of author in a context of his dissertation topic of which is "The Legal Regulation of Government and Municipal Bonds Issuance and Secondary Market". This paper is divided into a brief overview and three parts. Overview is intended to general ideas about the Debt Market place and its importance. The first part of article is allocated for a concept and essential conditions of the Government and Municipal Debt Securities. The notion's discussion is based on Lithuanian Law issues, which regulate an issuance and a secondary market of Sovereigns' Bonds. Author presents some critic to the address of not enough precise concepts of debt securities in local legal sources. Further analysis goes into main features of Bonds: issuing subject, nominal amount, maturity, interest, and others. The status of securities is scrutinized more detail. The categories like pari passu ranking; Negative Pledge and Covenants are discussed in this part of paper. Theoretical thinking in most cases is evidenced by examples from different countries bonds emissions' documentation. The second part of paper presents the main types of Sovereign Bonds. Beside the traditional Conventional or Plain Vanilla, Zero-Coupon, Floating Rate and Index-Linked Bonds author presents some more exotic types of securities. The guidance for some most active in Debt Market countries' practice is presented there. Some critic is addressed to the Government of Lithuania because of too conservative approach concerning the usage of wide spread bonds like Index-Linked Notes. Some part of analysis is allocated for the different possible ways to index payments under the Index-Linked Bonds. The problem of the indexation lag is presented as well. The rest of this part is dealing this some issues concerning exotic bonds. In particular, Municipal Project Bonds and their importance for the local ideas finance, Bonds with Embedded Options. The last part of article is allocated for the analysis of Events of Defaults under the Government and Municipal Securities. This is not only the list of possible and most frequent events but also the brief analysis of possible variations of the Cross-Default Clause. At the very end paper is accomplished by short conclusions