Corporate bonds are issued in blocks of $1,000 in face or par value. Almost all have a standardcoupon payment structure. Typically a corporate issuer will enlist the help of an investment bank to underwrite and market the bond offering to investors. The investor receives regular interest payment...
This is where you invest money with a large-scale institution, who will buy and sell bonds on your behalf. Your money will be pooled together with thousands of other investors, so mutual funds typically have a multi-billion dollar war chest. Key points to consider when using a mutual fund...
while issuance of high-yield bonds has been running at a multiple of the previous high during the 2006–07leveraged buyout(LBO) boom (seeExhibit 5.6). While publicly traded companies typically have only one common stock, larger companies tend to have many...
There are specific types of corporate bonds that are “callable” by the issuer and that can limit their overall return potential.This is typically done by abond issuerto allow them the option of refinancing to less expensive debt in the event of a drop in interest rates. The flip side of...
Momentum in corporate bonds has typically also been evaluated using decile-based momentum strategies, or even coarser partitions of the bond cross-section (e.g., Gebhardt et al., 2005, Jostova et al., 2013). In our sample, the number of bonds classified as winners (P10) and losers (P1...
In the secondary market, corporate bonds settle on a T + 2, T + 3, or possibly longer basis, whereas government and quasi-government bonds settle in cash (on the day of the trade) or on a T + 1 basis.【释义】C是正确的。在二级市场,公司债券通常以T + 2或T + 3为基础结算,也就是...
6.Private placements: typically have simpler loan agreements—which may nevertheless contain “custom” features; have more stringent covenants; are more easily renegotiated. 7.a.False. Lenders usually retain some recourse; e.g., they may demand a completion guarantee. b.True, but some new secur...
B. U.S. Treasury bonds C. Corporate Aaa bonds D. Municipal bondsLong-Term Bonds:Long-term bonds refer to bonds that take a long duration before the bond matures. Most investors argue that the lo...
Typically, the interest rate on corporate bonds will be ___ the more restrictions are placed on management through restrictive covenants, because ___. A、higher; corporate earnings will be limited by the restrictions B、higher; the bonds will be considered safer by bondholders C、lower; the bo...
Corporate bonds are usually considered short term if the term length is less than three years, medium term if the term length is four to 10 years and long term if the term length is more than 10 years. Longer-term bonds typically come with greater risk since there is more time for them...