ABSTRACT
Whereas eurobond issues normally raise a single large amount, medium term notes are sold in smaller tranches either on a continuous basis or in response to investor demand. Investors are able to specify an amount, a rate, a maturity profile and repayment structure that is then proposed by dealers to issuers where pre-arranged programs are in place. The financings resemble small eurobond issues (which they sometimes are) but the method of distribution resembles that of commercial paper. The market in medium term notes (MTNs) originated in the 1970’s in the USA. Domestic dollar MTNs were sold to investors on a best efforts basis through dealers, usually in registered and book entry form without delivery of physical certificates.
