89 results on '"CORPORATE bonds"'
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2. THE COST OF INEFFICIENT COUPONS ON MUNICIPAL BONDS.
- Author
-
Hopewell, Michael H. and Kaufman, George G.
- Subjects
MUNICIPAL bonds ,BOND market ,INVESTORS ,CORPORATE bonds ,INCOME tax - Abstract
The article reports on the costliness of inefficient coupons on municipal bonds. Capitalists and financiers buy more municipal bonds which sell close to their par value which is the lowest yield but with a coupon enabling its sale near par value. Also, investors try to make the marginal utility per dollar that is invested in each bond equal. However, coupon payments on municipal bonds are costly to the investor as opposed to U.S. Treasury or corporate bonds.
- Published
- 1974
- Full Text
- View/download PDF
3. CORPORATE BOND MARKET.
- Author
-
CONKLIN JR., GEORGE T.
- Subjects
BOND market ,CORPORATE bonds ,CAPITAL market ,INTEREST rates ,BUSINESS forecasting ,ECONOMIC forecasting - Abstract
The article provides an outlook for the corporate bond market. It is explained that the outlook for the corporate bond market cannot be viewed apart from other sectors of the capital market. The article cites the year 1959, when the net corporate bond financing dropped almost 30 per cent and corporate bond yields rose, which indicates the danger of segmental analyses of the capital market. Therefore, the assignment of the outlook for the corporate bond market means the outlook for interest rates, with a focus on the influence of the corporate sector.
- Published
- 1961
- Full Text
- View/download PDF
4. A 1918 FORECAST.
- Author
-
FORBES, B. C.
- Subjects
ECONOMIC forecasting ,POLITICAL systems ,CORPORATE bonds ,BOND market ,SOCIALISM ,SECURITIES ,WAGES ,UNITED States economy, 1918-1945 - Abstract
In this article, the author presents an economic and political outlook for the U.S. in 1918. Topics discussed include the political condition in Germany, the likelihood that the sluggishness of the corporate bond market will continue, and adjustments to governmental regulation. Also mentioned are socialism, confidence in securities, and the method of fixing wages and salaries.
- Published
- 1918
5. On the coast-to-coast trail of Equity Funding.
- Subjects
COMPUTER fraud ,INVESTORS ,BOND market ,CORPORATE bonds - Abstract
The article focuses on the issues concerning the counterfeit corporate bonds that were allegedly considered among the assets of Equity Funding Corp. of America. It states that the New York Insurance Department had presented Equity Funding former employee Ronald Secrist's accusations of scandal at the Investors Diversified Services Inc. Moreover, it notes that the scandal is one of the first major cases related to computer fraud.
- Published
- 1973
6. Foreign Corporate Bonds in the American Market
- Author
-
Arthur J. Rosenthal
- Subjects
Sociology and Political Science ,Creditor ,business.industry ,Bond ,Reproduction (economics) ,General Social Sciences ,Accounting ,Foreign direct investment ,Bond market index ,Market economy ,Capital (economics) ,Bond market ,Position (finance) ,Business - Abstract
commodities necessary for the rehabilitation and reconstruction of devastated Europe, and for the up-building and development of other less advanced countries. Financially, the United States is the one remaining large country with sufficient liquid capital to finance not only its own needs but those of other countries as well. The speeding up of production in the United States during the past few years has been so tremendous that a reservoir of liquid wealth has been created such as was deemed incredible a few years ago. It is not so many years since, when the reproduction of capital in the United States was not sufficiently large to satisfy the growing demands of industry and' commerce in our own country, that a large amount of foreign capital had to be utilized for the development of our industries. Our sales of commodities to foreign countries and the liquidation of our indebtedness to foreign creditors have completely reversed the situation. In other words, we are now in a position, from a material point of view, to embark upon a policy of foreign investment. Political and humanitarian considerations urge us forward. It therefore remains to examine such a policy from a practical point of view and to determine what steps are necessary to attract the interest of American investors to foreign government and corporate issues.
- Published
- 1920
7. Yields on Railroad and Industrial Bonds Highest in Five Years.
- Author
-
WHITE, WILLLIAM RUSSELL
- Subjects
CORPORATE bonds ,BONDS (Finance) ,BOND market ,GOVERNMENT securities ,RAILROAD finance ,RAILROADS - Abstract
The article discusses yield records achieved by U.S. railroad and industrial bonds in 1930. Topics addressed include the impact of bank selling on the bond market, the higher demand for government bonds, and the volume of corporate bonds forced on the market. Also mentioned are the accumulation of buying power for high-grade bonds, the re-investment of liquid funds, and the prices of bonds from railroad and industrial companies such as Chicago and North Western and American Rolling Mills Co.
- Published
- 1931
8. More Vigorous Credit Expansion Policy Betters Outlook for Bonds.
- Author
-
WHITE, WILLIAM RUSSELL
- Subjects
CREDIT control ,BANK loans ,BONDS (Finance) ,BOND market ,CORPORATE bonds - Abstract
The article discusses the plan of U.S. Federal Reserve agencies to adopt a more vigorous credit expansion policy and drive bank credit into more productive channels in 1932. Topics addressed include recoveries anticipated in domestic bonds, yields expected in higher-grade bonds, and American Telephone and Telegraph Co.'s funded debt. Also mentioned are bonds that are expected to benefit from credit easing such as Consolidated Gas and the railroad company Chesapeake and Ohio.
- Published
- 1932
9. An Alternative Approach to Predicting Corporate Bond Ratings: A Comment.
- Author
-
Horrigan, James O.
- Subjects
BOND ratings ,CORPORATE bonds ,BOND market ,CORPORATE finance ,ACCOUNTING firms ,BOND funds - Abstract
The article presents the author's response to the paper "An Alternative Approach to Predicting Corporate Bond Ratings," by Richard R. West. The author argues that West's dissection of a previous study has several weaknesses, including differences in the samples studied, the variables used and the orientation of each study. The author discusses each of these elements, bringing to light the conflicts that West introduces into the study of corporate bonds. Ultimately, the author finds that developing complex testing methods may be detrimental to the field before it is better understood.
- Published
- 1970
- Full Text
- View/download PDF
10. An Analysis of the Efficiency of the Market for New Corporate Bonds in Reflecting Two Sources of Essentially Free Information, 1960-1971
- Author
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John D. Martin
- Subjects
Economics and Econometrics ,media_common.quotation_subject ,Bond ,Bond market index ,Interest rate ,Corporate bond ,Market segmentation ,Debt ,Accounting ,Liquidity preference ,Economics ,Econometrics ,Bond market ,Industrial organization ,Finance ,media_common - Abstract
THE ABILITY to generate interest rate forecasts which are better than a simple nocharge extrapolation (the optimal forecast implied by an efficient market) is essential to the solution of the problem of timing the issuance of new bonds. A number of authors have suggested algorithms which they suggest can be used to determine the optimal time to issue new debt. However, the question that must be answered before any timing algorithm can be seriously applied is that of bond market efficiency. This thesis involves an analysis of the efficiency of the market for newly issued corporate bonds. Specifically, the market for new corporate debt is tested for its full reflection of the information contained in the time series of new issue yields (weak form information and the information contained in past errors in market anticipations. With respect to the latter source of information, the pure expectations, liquidity preference, and market segmentation hypotheses of the term structure were considered in estimating market anticipations of the six-month holding period yield on a newly issued corporate bond.
- Published
- 1974
11. Bear Market in Bonds.
- Author
-
BIEL, HEINZ H.
- Subjects
BOND market ,BEAR markets ,BONDS (Finance) ,CORPORATE bonds ,ECONOMIC development ,BOND prices - Abstract
The article discusses the bear market in the U.S. bonds market, focusing on the call money rate, interest rates paid out on stocks, and the decline of bond markets in general. Other topics include the decline of U.S. Governmental bonds, the reduced price of corporate bonds, and the rise in demand for credit for and capital investment to help fuel economic growth.
- Published
- 1956
12. Bonds Are Up--If They're Good.
- Subjects
FINANCIAL markets ,BOND market ,BOND prices ,CORPORATE bonds ,GOVERNMENT securities - Abstract
The article discusses the latest developments in the U.S. financial market as of February 26, 1949. It claims that corporations that want to apply for loans can expect a stable bond market during the year but they should guarantee that they will offer well-secured issues. It cites the two factors that affect the price of corporate bonds, namely, the current interest rate on government bonds and an allowance for business risk.
- Published
- 1949
13. Where Do Bonds Go Now?
- Subjects
BOND market ,CORPORATE bonds ,BONDS (Finance) - Abstract
The article focuses on the decline in the prices of corporate bonds in the U.S. and the conditions of the corporate bond market in 1948. Underwriters have agreed that corporate financing either in bonds or in preferred stocks is going to be more costly in 1948. As reported, there is expectation among underwriters regarding the bond market due to the behavior of the market since the U.S. Federal Reserve System cut its support prices for U.S. Treasury securities in December 1947.
- Published
- 1948
14. Money and the Markets.
- Subjects
STOCK exchanges ,BOND market ,MONEY market ,GOVERNMENT securities ,CORPORATE bonds ,INCOME tax ,PRICE inflation - Abstract
The article offers a look at the performance of the stock, bond, and money markets in the U.S. in March 1937. There was an increase by .5 percent in the yield of Treasury bonds and there was a decline in the prices of government and corporate bonds. Treasury receipts from income taxes dated March 15 are projected to total to approximately 700 million U.S. dollars. Factors that world contribute to fears of inflation are cited.
- Published
- 1937
15. THE MARKETS.
- Subjects
FINANCIAL services industry ,CORPORATE bonds ,STOCK exchanges ,BOND market ,STOCK prices - Abstract
The article presents updates on the financial markets in the U.S. for the week September 14, 1946. It highlights the performance of investment grade corporate bonds since the stock market started to retreat from its 1942-1946 bull market highs. It also discusses the performance of the less-than-investment-grade bond issues during the week. The article examines the slow pace of bond transactions at the New York Stock Exchange, and the sharp price weakness in stock trading.
- Published
- 1946
16. Money at a Low.
- Subjects
SPECULATORS ,SECURITIES industry ,CORPORATE bonds ,BOND market ,BOND prices - Abstract
The article reports that as of February 1946 speculators in Wall Street's high-grade corporate bonds as well as those of low priced stocks enjoyed higher yields with the rise in the prices of bonds in the U.S. The government bond market posted a sharp rise, particularly the Victory loan 2 ½% bonds. The outlook is said to be very promising, particularly to corporate borrowers.
- Published
- 1946
17. Analysts say it's bond-buying time.
- Subjects
BONDS (Finance) ,INVESTORS ,CORPORATE bonds ,CAPITAL gains ,BOND market - Abstract
The article reports that analysts are money managers are recommending to investors to buy bonds. According to the article, high-grade corporate bonds are yielding about 7.5 percent and 7 percent for long-term governments. Analysts advise investors to settle for 7 percent to 7.5 percent and expect a capital gain when rates fall and prices rise. Albert Cox, chief economist for Lionel D. Edie & Co., predicts a very strong bond market in June 1973.
- Published
- 1973
18. OPTIMAL TIMING OF BOND REFUNDING.
- Author
-
Weingartner, H. Martin
- Subjects
BOND refunding ,CORPORATE bonds ,BOND market ,FORECASTING ,MATHEMATICAL models of decision making ,CORPORATE finance ,CAPITAL structure ,INTEREST rate futures ,INTEREST rate swaps ,PREDICTION models ,DECISION support systems ,DYNAMIC programming - Abstract
Refunding is the operation by which the issuer of a bond calls it before maturity in order to replace it with another issue. The chief reason for calling is the interest saving which a new bond may make possible. In deciding whether to call a bond at any given time, the issuer must consider not only the potential savings from the current refunding, but also from future refundings up to some horizon fixed by financial policy. These savings must also be compared with those resulting from the decision to postpone refunding. This paper formulates the refunding problem in terms of a dynamic programming model in which the term structure of interest rates is utilized to obtain information about the future course of interest rates. [ABSTRACT FROM AUTHOR]
- Published
- 1967
- Full Text
- View/download PDF
19. Markets briefs.
- Subjects
STOCK exchanges ,COINAGE ,CORPORATE bonds ,BOND market - Abstract
This section offers news briefs on the U.S. stock market. The eight public members of the Commission on the Coinage have been chosen by President Lyndon B. Johnson to lift the ceiling on silver. The Lundin Market Trend Guide has discovered a new concept of the stock market cycle which outperforms the Dow Theory. About 7 billion U.S. dollars of corporate bonds will come to market, according to Salomon Brothers & Hutzler.
- Published
- 1967
20. Bond Prices Firm Up--But...
- Subjects
BOND prices ,SECURITIES ,MUNICIPAL bonds ,CORPORATE bonds ,BOND market - Abstract
The article reports on the recovery of bond prices in the U.S. as of August 1951. It states that bank-eligible Treasuries increased. Sharper recovery gains are expected among municipals and among corporate bonds. It is noted that the government market activities are unsubstantial and dealer markups cause the increasing scores rather than actual transactions.
- Published
- 1951
21. Bond Market Marks Time as Dealers Wait for Signal for Upward Turn.
- Subjects
BOND market ,CORPORATE bonds - Abstract
The article discusses the trading in the U.S. bond market, in which activity is focused in tax-exempt market and high-grade corporate bonds.
- Published
- 1960
22. Bonds feel squeeze of downward pressure.
- Subjects
BOND market ,GOVERNMENT securities ,CORPORATE bonds ,PRICE inflation - Abstract
The article reports on the condition of the bond market in the U.S. Prices have declined and borrowing costs have increased as big buyers of bonds have put on a small buyer's strike. Long-term government bonds were at their lowest prices while corporate bonds were hit by new offerings. The market's condition is attributed to the demand on capital market for funds, fear of inflationary price pressures, and corporate demand on new funds.
- Published
- 1965
23. Blue-chip corporations stream back to the bond market.
- Subjects
CORPORATIONS ,BOND market ,CORPORATE bonds ,SHORT-term debt ,RATE of return ,ECONOMICS - Abstract
The article reports that industrial companies move back to corporate bond market. President Michael Quinn of Dreyfus Special Income Fund says that corporations decided to offer corporate bonds because of increased short-term debt that need to be finance with long-term debt and expected drop in profit. However, it states that offerings of government agency could impede the growth of corporate rate because government offerings are much safer and the yields are the same as those form corporations.
- Published
- 1974
24. Effect of Bond Market on Stocks.
- Author
-
COMER, HARRY D.
- Subjects
BOND market ,STOCK exchanges ,CORPORATE bonds ,RATE of return on stocks ,DOW Jones industrial average ,DOW Jones transportation average - Abstract
The article examines the effect of the U.S. bond market in May 1946 on the U.S. stock market. It observes that high-grade corporate bonds have a yield of 2.5 percent in 1946, which is half the usual yielding 1929 while returns for common stocks have advanced from 2.75 percent to 3.50 percent over the same period. The article also presents a line chart showing the Dow-Jones Average for Industrials and Railroads of the U.S. stock market for May 1944.
- Published
- 1946
25. Buildup In Sight.
- Author
-
Schulz, John W.
- Subjects
CORPORATE bonds ,STOCK prices ,BOND prices ,INSTITUTIONAL investments ,BOND market ,CORPORATE finance - Abstract
The author foresees the beneficial implications of the 1971 drop in new stock issues and net new corporate bond offerings on stock and bond prices for 1972. He says that contrary to popular opinion, the 1971 drop in stock prices was not due to the loss of buying power by institutional investors but to the oversupply of stocks in the market and the lack of demand for it. He points out further that the 1971 stock market situation is only setting the stage for a much better performance for 1972.
- Published
- 1971
26. Tax-Exempts Lose Ground.
- Subjects
BUSINESS conditions ,MUNICIPAL bonds ,CORPORATE bonds ,BOND market ,MEAT packing houses ,FINANCIAL performance ,CORPORATE profits - Abstract
The article reports on the business condition of municipal bonds in the U.S. It claims that if higher yields on municipal bonds continue, this would make business borrowing more costly. Moreover, the trend would threaten 20 billion of pending public works and pressure corporate bond yields. It also relates the good performance of sales and profits of leading meat packing companies in the U.S. in 1947.
- Published
- 1948
27. Bond flood rouses ire of Europe.
- Subjects
CORPORATE bonds ,BONDS (Finance) ,BOND market - Abstract
The article focuses on the impact of the increased U.S. corporate bond offerings on the European market in 1966. The bond offerings increase interest rates abroad and postpone U.S. issues. Because of the situation, businesspeople abroad foresee the emergence of European restrictive measures on U.S. issues. U.S.-based companies such as Chrysler Corp. and Bankers Trust Co. are still lining up to borrow overseas.
- Published
- 1966
28. UNREHEARSED RISKS.
- Subjects
BOND market ,MUNICIPAL bonds ,CORPORATE bonds ,MUNICIPAL finance ,SAVINGS bonds ,ECONOMICS ,BOND prices - Abstract
The article discusses the economic aspects of bond markets in the U.S. as of 1957. Topics include the prices of of long-term U.S. Treasury Bonds, the fluctuations in the sales and prices of the corporate bond market, and the decreasing prices of municipal bonds of towns and cities in the U.S. Other topics include Victory Bonds, Turnpike Bonds, and warnings about long-term risks of bond investment.
- Published
- 1957
29. But No Financing Spree Is Likely.
- Subjects
CORPORATE bonds ,BONDS (Finance) ,CORPORATE finance ,BOND market - Abstract
The article reports on the plan of the U.S. government to provide corporate bond offerings in 1960. It notes that long-term interest rates dropped and corporate bond flotation increased due to credit reduction by the Board of Governors of the Federal Reserve System. It points out that corporations go to the market to receive funds thinking that the yield trend will increase.
- Published
- 1960
30. 1952 Bond Rise Is Mostly Mirage.
- Subjects
CORPORATE bonds ,BOND market ,BONDS (Finance) ,BOND prices ,RATE of return - Abstract
The article focuses on the trends in U.S. corporate bond prices in 1952. It states that corporate bond prices slightly increased in the yearend level due to the 1951 Christmas break in the bond market. However, it says that the long-term trend in bond prices has declined since 1951, with apparent signs of weakness in corporate bond market. It says that new bond issues should have to be offered at higher yields to attract buyers such as the bonds being offered by Tennessee Gas Transmission Co.
- Published
- 1952
31. A QUARTERLY SERIES OF CORPORATE BASIC YIELDS, 1952-57, AND SOME ATTENDANT RESERVATIONS.
- Author
-
DURAND, DAVID
- Subjects
RATE of return ,NEGOTIABLE instruments ,BOND market ,FINANCIAL instruments ,CAPITAL market - Abstract
The article discusses the basic yields from corporate bonds in the U.S. during the period 1952-1957. The yield series first examines a short period right after the Republicans came into power in the spring and summer of 1953. Next, a period beginning in the middle of 1956 and lasting until 1957 is examined, which the author states is more dramatic and longer. The article also discusses the uncertainty of short-term basic yields, basic yields and time series, and the implied forecasts of future yields. Several tables and equations are provided to help illustrate the study.
- Published
- 1958
- Full Text
- View/download PDF
32. AN ALTERNATIVE TO THE YIELD SPREAD AS A MEASURE OF RISK.
- Author
-
SILVERS, J. B.
- Subjects
YIELD to maturity ,RISK ,BONDS (Finance) ,BOND market ,RISK premiums ,SPREAD (Finance) - Abstract
Both in the theoretical and applied literature of finance the difference in yield-to-maturity between corporate bonds and government bonds has been used as a measure of the incremental riskiness of the former over the latter. While this approach has sometimes provided interesting results, the usefulness of yield spreads is lessened by inherent biases and implicit assumptions as to the pattern of risk adjustment for future promised cash flows. This article presents an alternative measure of the incremental risk compensation process over time on risky bonds. The proposed alternative views the risky bond price as the discounted present value of future certainty equivalent payments. The certainty coefficient, which is the ratio of certainty equivalent to promised payment, gives an implicit measure of risk adjustment for a given future payment period. Time series movements in the overall vector of these coefficients (empirically derived at each point in time for a number of future promised payment periods) within a given risk class represent a dynamic picture of changing risk compensation. The general methodology of this paper centers upon the estimation of single equation regression coefficients for the certainty coefficient variables and for additional variables representing marketability, callability and tax characteristics for bonds in a given risk class. Agency ratings are used to approximate equivalent risk classes and the Almon regression-interpolation procedure is used to estimate structures of certainty coefficients annually from 1952 to 1964. The empirical results over this period for investment grade bonds confirm the usefulness of the approach. The study furthermore indicates that, while call options and taxes have the expected effect on bond prices, marketability, as defined, has little impact. This outcome has important implications for the use of marketability measures and risk classes and for the apparent efficiency of the bond market. [ABSTRACT FROM AUTHOR]
- Published
- 1973
- Full Text
- View/download PDF
33. Money and the Markets.
- Subjects
FINANCIAL markets ,BOND market ,CAPITAL market - Abstract
This article comments on the activities and trends in the money and commodities markets as of September 9, 1938. The rumors of war in Europe drove the trading at the commodities, foreign exchange and securities markets with grains and metals rising and stocks and bonds and European currencies declining. The decline in British bonds has spread to the U.S. as evidence by few American corporate bonds trading.
- Published
- 1938
34. WALL STREET.
- Subjects
STOCKS (Finance) ,BONDS (Finance) ,BOND market ,FINANCIAL markets ,MONEY market - Abstract
The article discusses the debate over how the money rate will affect common stocks of 1953. One government bond dealer forecasted an increased activity in corporate bonds. Others argue tat a higher return from less speculative issues than equities will divert investor money from common stocks. Meanwhile, R.M. Smythe & Co. Inc. bids for the obsolete issues once bankruptcies, foreclosures or insolvencies occur.
- Published
- 1953
35. A MULTIVARIATE ANALYSIS OF INDUSTRIAL BOND RATINGS.
- Author
-
PINCHES, GEORGE E. and MINGO, KENT A.
- Subjects
BOND ratings ,BONDS (Finance) ,MATHEMATICAL models of investments ,MATHEMATICAL models of finance ,RATING agencies (Finance) ,BOND market - Abstract
The article develops a model for predicting corporate bond ratings. After a brief discussion of both ratings and previous research, the authors employ multiple discriminant analysis to develop a testable model. Factor analysis was used to screen data from firms corresponding to a sample of 180 newly-issued bonds rated "B" or higher for the period January, 1967 through December, 1968. Tests showed the model was successful 69.7% of the time at predicting bond ratings. The model had poor predictive ability for Baa-rated bonds, however.
- Published
- 1973
- Full Text
- View/download PDF
36. A Bond Primer.
- Subjects
BOND market ,BONDS (Finance) ,RATE of return on bonds ,MATURITY (Finance) ,SECURITIES - Abstract
The article provides insights on the U.S. bond market as of September 1974. Topics discussed include the difference between the current yield and the yield to maturity, the advantages of investing in long-term bonds to gain control over inflation, and the different kinds of securities such as U.S. Treasury securities, corporate bonds and floating-rate bank notes.
- Published
- 1974
37. How to Invest With the D-J at 520.
- Author
-
BIEL, HEINZ H.
- Subjects
STOCKS (Finance) ,SERVICES for investors ,STOCK prices ,DOW Jones industrial average ,BOND market ,GOVERNMENT securities - Abstract
The article presents the author's observations and comments regarding the condition of the stock markets in the United States as of May 15, 1956. Topics include the availability of brokerage and analytical services to potential investors, the impact of the level of the Dow Jones industrial average benchmark index on investment in common stocks, and the market for Treasury and Corporate Bonds.
- Published
- 1956
38. The Bond Market.
- Author
-
WEIL, MORRIS
- Subjects
BOND market ,BOND ratings - Abstract
The article presents outlook for the bond market in the U.S. as of August 1, 1945. It provides the current comparable yields of Moody's averages for the long-term corporate bonds. According to Moody's, its U.S. government bond average of seven taxable long-term issues is also reported at 2.33 percent.
- Published
- 1945
39. Bond Market Reacts Swiftly to Rumor That Interest Ceiling Will Be Lifted.
- Subjects
BOND market ,GOVERNMENT securities - Abstract
The article focuses on the U.S. bond market and reports that trading of long-term government bonds and new corporate bonds declined sharply following rumors that the U.S. Department of Treasury would lift interest ceiling on bonds.
- Published
- 1959
40. Bond dealers are betwixt and between.
- Subjects
BOND market ,CAPITAL market ,BOND prices ,MUNICIPAL bonds ,SCHOOL bonds - Abstract
The article reports on the developments in the U.S. bond market in 1964. There is a pressure on bond prices following a shift towards tighter credit and unsold bond issues in some sectors of the market. The sharpest rise has been in municipal bonds and the Bond Buyer's 20-bond index of tax-exempt yields has increased from 3.19% to 3.26% in two weeks. The yields on corporate bonds has also gone up and there is a shift in U.S. treasury bills.
- Published
- 1964
41. RECENT CASES.
- Subjects
- *
ACTIONS & defenses (Law) , *BONDS (Finance) , *CORPORATE debt , *BANKING industry , *INVESTORS , *INTERSTATE banking , *BOND market - Abstract
This article presents various court cases. In one of the cases, the superintendent of state banks, acting as receiver for an insolvent bank, presented a claim against the estate of an insolvent stockholder for the amount of the latter's statutory liability for obligations of the bank. The stockholder's trustee in bankruptcy sought to set off the amount of a note of the bank held by the stockholder. In another case, the defendant corporation issued to A $6000 in bonds secured by a mortgage on its property as collateral for a loan of $1500 and a prior debt of $500. In pursuance of authority given to him in case of default. A, after sending notice to the corporation, sold the bonds to the plaintiff for $2400. This was the total amount of A's claims against the defendant, with accrued interest. The plaintiff had full knowledge of the circumstances under which the bonds had been issued. In this suit to foreclose the mortgage deed of trust, the trial court limited the plaintiff's claim to $2400 with interest, instead of the face value of the bonds with interest. The plaintiff appealed. Held, that a purchaser with notice of corporate bonds pledged at a discount can recover only what he has paid for them.
- Published
- 1928
42. Default Risk, Scale, and the Homemade Leverage Theorem.
- Author
-
Smith, Vernon L.
- Subjects
BONDS (Finance) ,SECURITIES ,BOND market ,CORPORATIONS ,CAPITAL market ,INVESTORS - Abstract
This article discusses the assumptions and theorems of the homemade leverage of Modigliani-Miller regarding the issuance of bonds and shares by corporations and the default risk on bonds in the U.S. The issuance of unlimited quantities of bonds and shares by the corporations will not have a default risk on bonds. Moreover, the limitation on the corporation financial theory is given and independent capital market considerations. However the theorems states that the corporate rate of return per dollar invested is independent of the amount invested and with nonnegative restrictions on debt and shares and homemade leverage theorem fails when investor prefer an increase or decrease in the corporate debt-ratio. Furthermore, the unrationed margin purchaser of a corporation's share, an investor will prefer an increase (decrease) in the corporate debt-equity ratio.
- Published
- 1972
43. What's Ahead for Long-Term Bond Prices?
- Author
-
BARNES, EDWARD L.
- Subjects
BOND market ,BONDS (Finance) ,INVESTMENTS ,FINANCIAL services industry ,BANK reserves - Abstract
The article reports on the advance of the bond market, with long-term obligations being quoted on a 2-3/4 to 3-1/2 per cent basis, and short-term paper being in demand at much lower yields, as of October 1, 1935. It provides a table of representative, high-grade and long-term bonds for investors desiring a better income with safety and liquidity, but suggests a cautious approach on whether to buy. The article notes that massive bank reserves is one factor going for sustained bond prices.
- Published
- 1935
44. THE PRICE ADJUSTMENT PROCESS OF BONDS TO RATING RECLASSIFICATIONS: A TEST OF BOND MARKET EFFICIENCY.
- Author
-
KATZ, STEVEN
- Subjects
BOND ratings ,BOND market ,FINANCIAL market reaction ,BOND prices ,FINANCIAL markets ,CORPORATE debt - Abstract
The purpose of this study was to study the price adjustment process of bonds to rating reclassifications, and thus test the hypothesis of a semi-strong efficient bond market. The empirical results indicate that no anticipation exists prior to a public announcement of reclassification, a slight lag exists in the adjustment process subsequent to a public announcement of the rating change, and a 100% adjustment prevails 6-10 weeks after a reclassification. The result of no market anticipation is surprising for a rating change ostensibly reflects a fundamental shift in a company's fortune, whereas in the equity market, significant changes in a company's financial position are anticipated months in advance of public disclosure. These results suggest that little institutional research is being done to determine the proper credit level of bonds, and that bond investors appear to rely primarily on the pronouncements of the rating agencies as determinants of bond value. Furthermore, the average 6-10 week lag in complete price adjustment subsequent to a rating change implies an inefficient market slow to assimilate newly relevant information. As such, the above study raises serious questions as to the efficient nature of the bond market. [ABSTRACT FROM AUTHOR]
- Published
- 1974
- Full Text
- View/download PDF
45. DISCUSSION.
- Author
-
ANDREWS, VICTOR L.
- Subjects
BOND ratings ,ELECTRIC utilities ,BOND prices ,PRICES of securities ,FACTOR analysis ,BOND market - Abstract
Professor Katz has opened a neglected area of study in the pricing processes of the securities markets with what is, on the whole, a very estimable first effort. The rash of bond reclassifications in recent years found us with little or no knowledge of their effects, particularly with respect to yields. In this regard Katz's paper is a needed and welcome one. It may also be that, as his paper says, investigation will reveal something of bond market efficiency, though this is much more problematic and conjectural than the more narrowly framed problem of repercussions on yield of rating change. [ABSTRACT FROM AUTHOR]
- Published
- 1974
- Full Text
- View/download PDF
46. III RECOMMENDATIONS FOR FURTHER RESEARCH: PARTICULAR SECTORS OF THE CAPITAL MARKET.
- Subjects
BOND market ,CAPITAL market ,BUSINESS finance ,SUPPLY & demand ,GOVERNMENT securities - Abstract
The article presents the third section of a report by the National Bureau of Economic Research, which deals with an exploration of the flow of funds through the stock market, the secondary market, over-the-counter market, and securities exchanges. It is noted that there is little data available on the financial backing of small businesses. It is also felt that research on the new-issues market is also inadequate, particularly the amount of stock being issued and whether it is common or preferred stock.
- Published
- 1964
- Full Text
- View/download PDF
47. THE BOND MARKET, 1962 AND 1963.
- Author
-
CONKLIN JR., GEORGE T.
- Subjects
BOND market ,CAPITAL market ,BUSINESS forecasting ,FINANCIAL markets ,INTEREST rates - Abstract
The article discusses the bond market during the period of 1962-1963 in the U.S. In 1962 there was a gradual decline in long term interest rates in the U.S. with the greatest downward trend occurring in the first five months. There was a simultaneous upward trend in the short term interest rates. The spread between corporate and government bonds lowered between 1960 and 1961. Also, the municipal bond market experienced unusual fluctuations between short and medium term bonds as well as low and high quality bonds.
- Published
- 1963
- Full Text
- View/download PDF
48. MAJOR FACTORS AND TRENDS IN THE GOVERNMENT BOND MARKET.
- Author
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PISER, LEROY M.
- Subjects
BOND market ,GOVERNMENT securities ,EFFICIENT market theory ,NEGOTIABLE instruments ,FINANCIAL markets - Abstract
The article discusses major factors and trends in the U.S. government bond market during 1952. The year began slowly as the help from the Federal Reserve investors were waiting for never materialized. The long-term market picked up in the spring, as pension and retirement funds were solid customers. The continued weak money market gave bonds a further boost that was supported and encouraged by the Treasury's decision to refund restricted bonds. The rest of the year saw seasonal swings with the Federal Reserve trying to offset outside factors.
- Published
- 1953
- Full Text
- View/download PDF
49. COLLEGE REVENUE BONDS TO FINANCE SELF-SUPPORTING PROJECTS.
- Author
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TAYLOR, J. G.
- Subjects
UNIVERSITY & college finance ,BONDS (Finance) ,BOND market ,FINANCIAL institutions ,SECURITIES - Abstract
The article discusses college revenue bonds. The author describes their history and details their increased usage since World War II, which has been aided by the growing receptiveness on the part of institutional investors to hold such securities. Legal considerations surrounding the bonds are reviewed, as are the various types of college projects financed by them. The author notes that revenue bonds make it possible for institutions of higher learning to commence capital projects they might otherwise not be able to afford.
- Published
- 1949
- Full Text
- View/download PDF
50. DETERMINANTS OF MUNICIPAL BOND YIELDS.
- Author
-
Hastie, K. Larry
- Subjects
MUNICIPAL bonds ,BOND ratings ,RATE of return ,BOND market ,REGRESSION analysis - Abstract
This article presents information on the determinants of municipal bond yields. The author examines the determinants of the structure of municipal bond yields and provides empirical evidence from tests that were conducted to measure the impact of these factors on the yields. The author is interested in understanding why the yields from one state may be different from another state's bond yields. The findings indicate that bond yields are a result of the bond's default risk and marketability. The author discusses the situations where each of these factors plays the more significant role.
- Published
- 1972
- Full Text
- View/download PDF
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