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Topic: Corporate bond


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 Bonds
Bonds may also be classified as domestic or foreign bonds, the latter including Eurobonds and bonds payable as to principal and/or interest in specified choice of foreign currency as well as currency of the country of issuance.
Convertible bonds are bonds that at the option of the bondholder can be exchanged for other securities, usually equity securities of the corporation issuing the bonds during a specific time at a determined or determinable conversion rate.
Bond ratings are based on various factors, including the issuer's existing debt level; the issuer's previous record of payment; the safety of the assets or revenues committed to paying off principal and interest; the mortgage provisions in the bond indenture, the existence of a sinking fund, and others.
www.eagletraders.com /neg_financial_instruments/bonds_o.htm   (1919 words)

  
 AllRefer.com - bond (Money, Banking, And Investment) - Encyclopedia
Security is usually pledged against a bond; unsecured bonds are regarded as a long-term obligation on the capital of the issuing body.
One method used to retire bonds is the sinking fund; in such a case the issuing body buys back some of its bonds each year and holds them itself, applying the interest to the fund.
Bonds were sold by the U.S. government to finance both World Wars and are still an important money-raising device.
reference.allrefer.com /encyclopedia/B/bond.html   (413 words)

  
 corporate bond Definition
Corporate bonds often pay higher rates than government or municipal bonds, because they tend to be riskier.
Bonds are considered to be less risky than stocks, since the company has to pay off all its debts (including bonds) before it handles its obligations to stockholders.
Corporate bonds have a wide range of ratings and yields because the financial health of the issuers can vary widely.
www.investorwords.com /1131/Corporate_bond.html   (317 words)

  
 Developing the domestic corporate bond market
Corporate bonds will give issuers the chance to maintain their credit limits with banks, and provide them with alternative funding sources at prices and conditions not available in the local market.
Corporates who want to issue bonds should have solid financial positions and demonstrate their ability to pay the interest and the principal due upon maturity.
Bonds issued by a joint venture between two companies may be guaranteed by both parent corporations.
www.jordanembassyus.org /04282002007.htm   (1295 words)

  
 Municipal bonds FMSbonds.com: Tax-free Bond Specialists
Along with construction funds, the bond issue included sufficient monies to fund a "debt service reserve" fund to be used should revenues be insufficient to pay debt service.
In the worst case, it would be unlikely that the insurer would choose to redeem the bonds early since that would require the insurer to fully fund the principal rather than relying on toll revenues.
Bond companies seem to be reluctant to reveal the compensation cost they get for handling transactions.
www.fmsbonds.com /bond_forum1.html   (2277 words)

  
 Composite Corporate Bond Rate Table
Note: In determining whether a plan is subject to quarterly contributions under section 412(m)(1) for the plan year beginning January 1, 2004, the funded current liability percentage for 2003 may be recalculated using the corporate weighted average interest rate.
However, for purposes of computing the required installment under section 412(m)(4) for plan years beginning in 2004, the required amount for plan years beginning in 2003 may not be recalculated using the corporate weighted average interest rate.
Instead, the required amount for 2003 will continue to be determined based upon an interest rate which is within the range of 90 to 120 percent of the weighted average of the rate on 30-year Treasury securities.
www.irs.gov /retirement/article/0,,id%3D123229,00.html   (122 words)

  
 Investment Resources
Bonds with high ratings are expected to pay their interest and principal without problems.
Bonds with low ratings have a greater default risk, and their issuers must offer higher interest rates to get investors to buy the bonds.
If we have a 7% bond and the prevailing rate is 8%, but the bond matures in a year, it's not a big problem.
www.ganesha.org /invest/index.html   (586 words)

  
 Corporate Bond Yields Still Lower - - CFO.com   (Site not responding. Last check: 2007-10-07)
Continuing a movement which began the prior week, most corporate bond yields fell during the week ending July 19 while tracking Treasurys.
But, reversing a recent trend, the very lowest-rated corporate bond issuers saw their yields drop the most.
Investors for bond in that category, however, still continue to demand a much higher return than the 20.864 percent prevailing on July 19, 2000.
www.cfo.com /Article?article=4245   (252 words)

  
 Types of Bonds   (Site not responding. Last check: 2007-10-07)
Corporate bonds (also called corporates) are debt obligations, or IOUs, issued by private and public corporations.
When you buy a bond, you are lending money to the corporation that issued it.
By providing this general information, The Bond Market Association makes neither a recommendation as to the appropriateness of investing in fixed-income securities nor is it providing any specific investment advice for any particular investor.
www.investinginbonds.com /info/igcorp/what.htm   (213 words)

  
 Corporate Bond Investing - High Yield - Personal Finance - Financial Education Center for Investors - BlueCollarDollar   (Site not responding. Last check: 2007-10-07)
There are dozens of varieties of corporate bonds and many of them include call options within them.
Moodys is the most often used when rating corporate bonds.
There is definitely more money to be made in corporate investments than with municipal type bonds, but the risk is also greater, and the interest is taxable.
bluecollardollar.com /corporate_bonds.html   (549 words)

  
 The Role of a Corporate Bond Market in an Economy -- and in Avoiding Crises
This essay examines the principal differences between an economy with a well-developed corporate bond market free from government interference and an economy in which bank financing plays a central role (as in East Asia).
When a full-fledged corporate bond market is present, market forces have a much greater opportunity to assert themselves, thereby reducing systemic risk and the probability of a crisis.
This is because such an environment is associated with greater accounting transparency, a large community of financial analysts, respected rating agencies, a wide range of corporate debt securities and derivatives demanding sophisticated credit analysis, and efficient procedures for corporate reorganization and liquidation.
repositories.cdlib.org /iber/finance/RPF-287   (302 words)

  
 Pause Before Jumping on the Corporate-Bond Wagon
After Sept. 11, investment-grade corporate bond yield spreads immediately gapped out by 30 to 40 basis points, a tremendous movement in a short time, and then narrowed 10 to 20 basis points in the past few weeks.
Spreads didn't reach the peaks they saw late last year (meaning that corporates have still outperformed Treasuries this year), but they're within hailing distance of that level and of the spikes of the early 1980s and 1987.
This support would be gradual because lower bond yields are likely to produce more corporate issuance; you'd probably earn your coupon and not realize a sudden payday.
www.thestreet.com /comment/numbersgame/10002478.html   (1095 words)

  
 ABC News: S&P Decisions Shake Corporate Bond Market   (Site not responding. Last check: 2007-10-07)
GM's 8.375 percent bonds due 2033 fell $5.50 to $73.50 per $100 in face value, yielding 11.573 percent, according to MarketAxess, an electronic trading system for corporate bonds.
GMAC's 6.75 percent bonds due 2014 were $4.75 lower at $81 per $100, to yield 9.864 percent, while Ford Motor Credit's 7 percent bonds due 2013 were $1.875 lower at $90.50 per $100, yielding 8.612 percent.
Ironically, both the high-yield and the investment-grade corporate bond markets had been enjoying gains that began Wednesday after billionaire investor Kirk Kerkorian said he plans to raise his equity stake in GM to just under 9 percent.
abcnews.go.com /Business/wireStory?id=732488   (402 words)

  
 Investing In Bonds
If the first question is “what are bonds?”, then the next question is, “what else do I need to know to become a savvy bond investor?”...
The bond market offers investors more choices than the stock market.You can choose from municipal, government, corporate, mortgage-backed or asset-backed securities and international bonds.
Bonds are an important component of a strategically-balanced portfolio at every stage of any investor’s life...
www.investinginbonds.com   (423 words)

  
 SSRN-Which Factors Affect Corporate Bond Pricing? Evidence from Eurobonds Primary Market Spreads by Andrea Sironi , ...
The question of which factors are relevant in determining corporate bonds pricing is empirically investigated by analyzing the issuance spreads of eurobonds completed by Canadian, European, Japanese and U.S. companies during the 1991-2001 eleven year period.
First, the ratings of corporate bonds are the most important determinant of spreads between the yield to maturity of bonds and that of equivalent Treasury securities.
Third, while a bond's expected tax treatment represents a relevant factor explaining spreads cross-sectional variability, the primary market efficiency and the expected secondary market liquidity appear as poor explanatory variables.
papers.ssrn.com /sol3/papers.cfm?abstract_id=308299   (288 words)

  
 Corporate Bond Valuation and Hedging with Stochastic Interest Rates and Endogenous Bankruptcy
This Paper analyses corporate bond valuation and optimal call and default rules when interest rates and firm value are stochastic.
Bankruptcy rules are important determinants of corporate bond sensitivity to interest rates and firm value.
We show that empirical results on the relation between corporate spreads and Treasury rates provide evidence on duration and find that the endogenous model explains the empirical patterns better than typical exogenous models.
ideas.repec.org /p/cpr/ceprdp/3328.html   (341 words)

  
 Spear, Leeds & Kellogg Now Providing Liquidity to the TradeWeb Corporate Bond Marketplace (The Thomson Corporation) - ...   (Site not responding. Last check: 2007-10-07)
Since launching in early June, TradeWebs new corporate bond platform has expanded rapidly and now more than 175 institutions and over 450 individuals access the platform for real-time TRACE information, commingled dealer inventories, single and multiple security trading, and straight-through processing.
TradeWeb Corporates is the only platform to fully integrate TRACE data into a traders workflow and to allow buy-side investors to commingle and electronically upload up to 30 pre-allocated buy and sell trades on a single electronic Bid & Offer List.
Thomson Financial is part of The Thomson Corporation (www.thomson.com), a leading provider of value-added information, software tools and applications to more than 20 million users in the fields of law, tax, accounting, financial services, higher education, reference information, corporate training and assessment, scientific research and healthcare.
www.pressi.com /int/release/91204.html   (630 words)

  
 Tax Exempt municipal bonds and corporate bond investments at Stoever Glass & Co., Inc.   (Site not responding. Last check: 2007-10-07)
Over the years we have earned an industry-wide reputation for better prices on tax free municipal bonds and for educating investors to better understand municipal bonds.
What makes municipal bonds so attractive is the combination of tax free income and safety of principle.
In addition to tax free Municipal Bonds, we also deal in other fixed income investments including U.S. Government Agencies, Mortgage Backed Securities, Corporate Bonds, plus a few select Mutual Funds and Unit Trusts.
www.stoeverglass.com   (151 words)

  
 EconPapers: Corporate Bond Valuation and Hedging with Stochastic Interest Rates and Endogenous Bankruptcy
Corporate Bond Valuation and Hedging with Stochastic Interest Rates and Endogenous Bankruptcy
Abstract: This paper analyzes corporate bond valuation and optimal call and default rules when interest rates and firm value are stochastic.
We show that empirical results on the relation between corporate spreads and Treasury rates provide evidence on duration, and we find that the endogenous model explains the empirical patterns better than do typical exogenous models.
econpapers.hhs.se /article/ouprfinst/v_3A15_3Ay_3A2002_3Ai_3A5_3Ap_3A1355-1383.htm   (256 words)

  
 Chinese technology firm to issue corporate bond   (Site not responding. Last check: 2007-10-07)
The bond has a maturity term of 10 years and funds financed by the bond will be fully applied to external contracted projects.
The Chinese corporate bond market lagged behind the international standard, said Zhang Dongsheng, director of finance department of National Development and Reform Commission, at the issuance ceremony.
The issuance of the bond would be helpful to implementing China's strategy of "going global" and boosting Chinese corporate bond, Zhang said.
english.peopledaily.com.cn /200403/31/eng20040331_139001.shtml   (319 words)

  
 Structural Models of Corporate Bond Pricing: An Empirical Analysis
This paper empirically tests five structural models of corporate bond pricing: those of Merton (1974), Geske (1977), Leland and Toft (1996), Longstaff and Schwartz (1995), and Collin-Dufresne and Goldstein (2001).
We implement the models using a sample of 182 bond prices from firms with simple capital structures during the period 1986-1997.
The conventional wisdom is that structural models do not generate spreads as high as those seen in the bond market, and true to expectations we find that the predicted spreads in our implementation of the Merton model are too low.
www.defaultrisk.com /pp_price_29.htm   (255 words)

  
 WHY WE LOVE HIGH YIELD CORPORATE BOND FUNDS   (Site not responding. Last check: 2007-10-07)
High-Yield Corporate Bonds (HYCB’s) are IOU’s of companies who are too new or too debt-heavy to qualify for “investment grade” ratings (AAA, AA, A or BBB from Standard and Poor’s, for example).
In effect, investment-grade bonds are judged to have a low risk of default (inability to pay each installment of interest when due), whereas HYCB’s are judged to be more risky as to the potential for future default –; hence the term “junk bonds.”
Second, after buying each high yield corporate bond, a skillful manager keeps close track of the issuing company, dumping the bond quickly from the fund if any sign of deterioration occurs.
www.junkbondfunds.net /why_we_love_hycb.htm   (999 words)

  
 BIS says widening of corporate bond spreads may not yet have run its course - Forbes.com   (Site not responding. Last check: 2007-10-07)
Spreads on A-rated dollar-denominated corporate bonds widened around 20 basis points to a peak of 81 basis points on May 17, while spreads on high yield bonds widened by 185 basis points to 457 over the same period.
At the same time, flight to quality buying and weak economic news drove government bond yields lower, with US bond yields falling to around 4.0 pct and German bond yields declining to 3.3 pct, their lowest level since the start of European monetary union.
The increase in corporate bond spreads, and the accompanying decline in equity markets, reflected a retreat from higher risk investments and a shift into government bonds, the BIS said.
www.forbes.com /afxnewslimited/feeds/afx/2005/06/12/afx2088531.html   (615 words)

  
 FMSbonds.com
A Kentucky appeals court says residents of the Bluegrass State don't have to pay taxes on interest earned from out-of-state bonds.
These are just some of the questions investors are asking in our newly updated investor Bond Forum.
Iowa joined the growing list of states that refinanced tobacco debt, creating a domino effect that bodes well for tobacco bondholders.
www.fmsbonds.com   (205 words)

  
 BondSchool.com   (Site not responding. Last check: 2007-10-07)
Five overview sections cover the features and risks of corporate bonds, agency securities, CDs, and structured notes.
The bond basics section also provide additional tools and resources available on bonds.
Compare features of individual bonds with bond funds and ETFs.
www.bondschool.com   (168 words)

  
 Zero-Coupon Bond
A debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.
Some zero-coupon bonds are issued as such, while others are bonds that have been stripped of their coupons by a financial institution and then repackaged as zero-coupon bonds.
Because they offer the entire payment at maturity, zero-coupon bonds tend to fluctuate in price much more than a coupon bond.
www.investopedia.com /terms/z/zero-couponbond.asp   (168 words)

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