Question
Could you please rephrase the following passage, and keep it as he same length Jack Ma and his investment bank chose to break up the
Could you please rephrase the following passage, and keep it as he same length
Jack Ma and his investment bank chose to break up the bond issue into 5 different tranches as by doing so it was able to spread out the maturities in the offering and hence was able to lock in its financing costs for several years. The duration range of the tranches was from 3 years to 20 years and this gave Jack Ma and Alibaba to take advantage of having multiple maturities. Also by issuing their bond in tranches they smartly made their bonds more attractive for investors. This is because tranches allow investors to create a single or several classes of securities with a higher rating than the underlying asset pool. It also allows the investors to match their investments with their needs. Some investors need a long term steady cash flow while some investors need short term cash flow. The benefit of the 6th tranche with a floating rate note denominated in Singapore dollars was that it enabled Jack Ma and Alibaba to match its decision of raising money through bonds with its expected operating activities. This will help Jack Ma and his company to better manage interest rate risks that it is exposed to.
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