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Exchange bond

An issue registered under a simplified procedure by the exchange rather than the regulator, with fewer requirements placed on the issuer.

How to read the number

The lighter procedure shortened the road to market and opened it to mid-sized companies — which is why the corporate segment is as crowded as it is.

When the metric lies

Fewer formalities do not mean less risk. Disclosure by such an issuer is thinner, and there is often simply nothing to compare it with on a public company's terms.

Also known as: exchange-registered bond

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