Corporate Bonds

Corporate Bonds - 17-1Corporate BondsU.S. Corporate Bond...

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Unformatted text preview: 17-1Corporate BondsU.S. Corporate Bond MarketMortgage bondsCollateral trust bondsEquipment trust certificatesMortgage pass-through securitiesCollateralized mortgage obligations (CMOs)Asset-backed securities (ABS)Certificates for automobile receivables (CARs)Credit card receivables17-2Corporate BondsHigh-Yield Bonds Also known as speculative bonds and junk bondsBased on a specification that bonds rated below BBB make up the high-yield market, that is, non-investment grade bondsThe high-yield bond market exploded in size and activity beginning in the early 1980s (Exhibit 17.6)Exhibit 17.7 contains the distribution of ratings for all the bonds contained in the 17-3Exhibit 17.617-4Exhibit 17.717-5Corporate BondsJapanese Corporate Bond MarketBonds issued by industrial firms or utilitiesMinimum issuing requirements are specified by the Ministry of FinanceBonds issued by banks to finance loans to corporationCommercial banksLong-term credit banksMutual loan and savings banksSpecialized financial institutions17-6...
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This note was uploaded on 01/24/2012 for the course FIN 4360 taught by Professor Davidbray during the Spring '12 term at Kennesaw.

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Corporate Bonds - 17-1Corporate BondsU.S. Corporate Bond...

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