HIGH YIELD BONDS

HIGH YIELD BONDS
Author: Mark Shenkman
Publisher: McGraw Hill Professional
Total Pages: 614
Release: 1999
Genre: Business & Economics
ISBN: 9780071376969

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HIGH-YIELD BONDS provides state-of-the-art research, strategies, and toolsÑalongside the expert analysis of respected authorities including Edward Altman of New York UniversityÕs Salomon Center, Lea Carty of MoodyÕs Investor Service, Sam DeRosa-Farag of Donaldson, Lufkin & Jenrette, Martin Fridson of Merrill Lynch & Company, Stuart Gilson of Harvard University, Robert Kricheff of CS First Boston, and Frank Reilly of the University of Notre DameÑto help you truly understand todayÕs high-yield market. For added value and ease of reference, this high-level one-volume encyclopedia is divided into seven sections detailing virtually every aspect of high-yield bond investment. They include: Market structureÑThe role of investment banks in security innovation and market development, evolution of analytical methodologies, and recent leveraged loan market developments; Security risk analysisÑHistorical bond default rates, real interest rate and default rate relationships, and new simulation methodologies for modeling credit quality; Security valuationÑImpact of seniority and security on bond pricing and return, important trading factors, and a Monte Carlo simulation methodology for valuing bonds and options in the context of correlated interest rate and credit risk; Market valuation modelsÑEconometric studies which detail the importance of monetary influences, risk-free interest rates, default rates, mutual fund flows, and seasonal fluctuations; Portfolio managementÑHistorical perspective and comparison to alternative investments, analysis of indices available to investors, and specific portfolio selection and risk management strategies of professional fund managers; Distressed security investingÑHistorical risk and return information, plus an academic overview of the market and decision criteria for uncovering and investing in securities with higher-than-average risk-adjusted returns; Corporate finance considerationsÑEmerging firmsÕ strategic choice between external debt and equity financing, as well as the choice of issuing public versus private (Rule-144a) securities. HIGH-YIELD BONDS provides extensive coverage of bond valuation and the construction and management of high-yield portfolios. Advanced Monte Carlo simulation models for the valuation of bonds and options on bonds as well as risk assessments on portfolios of bonds under conditions of correlated interest rate and credit risk are demonstrated. In todayÕs explosive environment of multiple new issues and high risk versus return relationships, it is paramount that you get advice from analysts and experts who have been influential in shaping and defining the market. HIGH-YIELD BONDS will provide you with a valuable reference to this fascinating and constantly changing class of securities, helping you assemble a stable, diversified portfolio of fixed income investments that provides the greatest returns and the lowest risks.

Higher Bond Yields

Higher Bond Yields
Author: Robert Ross Godfrey
Publisher: Irwin Professional Publishing
Total Pages: 176
Release: 1994
Genre: Business & Economics
ISBN:

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In 1994, 40 percent of the nearly $300 billion of new-issue bonds sell with an insurance policy which gives them a Triple-A rating from the major rating agencies. Yet, natural Triple-A bonds those that don't carry this added protection - are valued higher in the market place. Robert Godfrey investigates this anomaly and proves to investors that insured Triple-A bonds are actually the best to buy. Investors should welcome Godfrey's insights, which reveal that Triple-A bonds have: a stronger credit rating than uninsured Triple As; an exceptionally low default rate; and built-in financial strength to protect them in dire economic times.

Bonds Decoded: Unraveling the Mystery Behind Bond Markets

Bonds Decoded: Unraveling the Mystery Behind Bond Markets
Author: James Parducci
Publisher: James Parducci
Total Pages: 64
Release: 2023-11-16
Genre: Education
ISBN:

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Take a journey through the fundamentals of bonds in this guide that lays the groundwork for understanding their importance in the financial landscape. Delve deeper into the various types of bonds, exploring their unique characteristics and benefits.

Bond Yields in Emerging Economies

Bond Yields in Emerging Economies
Author: Laura Jaramillo
Publisher: International Monetary Fund
Total Pages: 25
Release: 2012-08-01
Genre: Business & Economics
ISBN: 1475505485

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While many studies have looked into the determinants of yields on externally issued sovereign bonds of emerging economies, analysis of domestically issued bonds has hitherto been limited, despite their growing relevance. This paper finds that the extent to which fiscal variables affect domestic bond yields in emerging economies depends on the level of global risk aversion. During tranquil times in global markets, fiscal variables do not seem to be a significant determinant of domestic bond yields in emerging economies. However, when market participants are on edge, they pay greater attention to country-specific fiscal fundamentals, revealing greater alertness about default risk.

High Yield Bonds

High Yield Bonds
Author:
Publisher:
Total Pages: 56
Release: 1989
Genre: Financial institutions
ISBN:

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Beyond Junk Bonds

Beyond Junk Bonds
Author: Glenn Yago
Publisher: Oxford University Press
Total Pages: 314
Release: 2003-03-27
Genre: Business & Economics
ISBN: 0198034032

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Since financial myths exploded in the 1980s, the perspective of time creates a unique opportunity to update and expand the analysis begun in Glenn Yago's 1991 book, Junk Bonds: How High Yield Securities Restructured Corporate America (Oxford University Press). At the time of its publication, Junk Bonds drew controversial responses from the Federal Reserve and government agencies. In retrospect, the evidence clearly casts favorable light on the role of high yield securities. The research presented here demonstrates how financial innovations enabled capital access for industrial restructuring, capital and labor productivity gains, and improved global competitiveness. Enough time has now passed to allow this dispassionate empirical analysis to shear away the hype and hysteria that surrounded the Wall Street scandals, Washington controversies, and media frenzy of the time. Beyond Junk Bonds provides a one-stop data, reference and case study presentation of the firms and securities in the contemporary high yield market and the financial innovations that spurred growth in the nineties and will continue to finance the future. The high yield market incubated successive waves of financial technologies that now proliferate beyond junk bonds to all the dimensions and dynamics of global debt and equity capital markets. It charts the recovery of the market in the 1990s, the recent wave of fallen angels, distressed credits and defaults, and suggests how the high yield market will be recreated in the global market of the 21st century. It explicates the linkages between the high yield market, and other credit and equity markets in managing a firm's capital structure to execute its business strategy. The weakening of the U. S. economy in 2001 and the huge shock to Wall Street from the terrorist attacks of September 11 witnessed a historic increase in the yield to maturity of high yield bonds. Despite the volatility in the flow of funds to high yield mutual funds and occasionally sharp increases in non-investment grade debt yields, the asset class has been one of the best performing fixed income investments of the past decades. In fact, high yield bonds offer an attractive risk-reward ratio competitive with more traditional asset classes. Anyone active in corporate finance, financial institutions and capital markets will find this book a must read for interpreting and understanding the recent history both of the high yield marketplace and its interaction with private equity, public equity, and fixed income markets.

Spillovers from U.S. Monetary Policy Normalization on Brazil and Mexico’s Sovereign Bond Yields

Spillovers from U.S. Monetary Policy Normalization on Brazil and Mexico’s Sovereign Bond Yields
Author: Carlos Góes
Publisher: International Monetary Fund
Total Pages: 39
Release: 2017-03-10
Genre: Business & Economics
ISBN: 1475586078

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This paper examines the transmission of changes in the U.S. monetary policy to localcurrency sovereign bond yields of Brazil and Mexico. Using vector error-correction models, we find that the U.S. 10-year bond yield was a key driver of long-term yields in these countries, and that Brazilian yields were more sensitive to U.S. shocks than Mexican yields during 2010–13. Remarkably, the propagation of shocks from U.S. long-term yields was amplified by changes in the policy rate in Brazil, but not in Mexico. Our counterfactual analysis suggests that yields in both countries temporarily overshot the values predicted by the model in the aftermath of the Fed’s “tapering” announcement in May 2013. This study suggests that emerging markets will need to contend with potential spillovers from shifts in monetary policy expectations in the U.S., which often lead to higher government bond interest rates and bouts of volatility.

Study of Rising Benchmark 10-Year Bond Yield and Its Relevance to Economic Factors

Study of Rising Benchmark 10-Year Bond Yield and Its Relevance to Economic Factors
Author: Dr. Smita Jape
Publisher:
Total Pages: 10
Release: 2020
Genre:
ISBN:

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The paper reviews the increasing benchmark 10-year bond yield. It mentions the factors which are contributing towards the increase in bond yields and also the impact of rising bond yield on the Indian economy. The bond yield has impact on stock market, debt market and the currency of a country. The government bond yield of a country helps to understand the state of its economy and it is often compared with bond yields of other countries as well.The health of a country's economy is indicated by inflation, lending rate of the central bank, GDP growth rate, and national income and this can be analysed by an economist through Conventional metrics. The objective of paper is to understand the rising bond yield (benchmark) and factors affecting the Indian economy and study the correlation and influence of economic parameters such as Sensex, Nifty, FII, DII, CPI, India VIX and exchange rate. The secondary data of five years is being used for the study and the data is being further analysed by using statistical tools using SPSS software. The finding shows that for developing country like India how government is among the biggest investors in the economy, so for assessing economic health of the country, bond yields can be a useful parameter.Economists use conventional matrices for measuring the health of a country's economy which includes inflation, lending rate of the central bank, growth rate, and national income. These are further measured by as Sensex, Nifty, FII, DII, CPI, India VIX and exchange rate. However, bond yields are also a very perceptive means of evaluating the trajectory of an economy. As investors sell government bonds, prices decrease and yields increase. A higher yield indicates greater risk. If the yield offered by a bond is much higher than what it was when issued, there is a chance that the company or government that issued it is financially stressed and may not be able to repay the capital.