金融市场与金融机构Chapter8要点解析.ppt

* 8.7 Corporate Bonds: Interest Rates Figure 8.5 Corporate Bond Interest Rates, 1973–2004 (End of year) Corporate Bonds: Interest Rates * 8.7.1 Characteristics of Corporate Bonds Registered Bonds Replaced “bearer” bonds IRS (Inland Revenue Service 国税局) can track interest income this way Restrictive Covenants 限制性契约 Mitigates conflicts with shareholder interests May limit dividends, new debt, ratios, etc. * 8.7.1 Characteristics of Corporate Bonds Call Provisions 回购条款 The right for the issuers to force the holders to sell back. Sinking fund Interest of the stockholders Higher yield for the call provision Conversion Some debt may be converted to equity Similar to a stock option, but usually more limited * 8.7.2 Types of Corporate Bonds Secured Bonds Mortgage bonds Equipment trust certificates Unsecured Bonds Debentures Subordinated debentures 附属债券 –lower priority claim Variable-rate bonds 利率可变债券/// * Junk Bonds Debt that is rated below BBB Often, trusts and insurance companies are not permitted to invest in junk debt Michael Milken developed this market in the mid-1980s, although he was convicted of insider trading 8.7.2 Types of Corporate Bonds * 8.7.3 Corporate Bonds: Debt Ratings The next slide explains in further details the rating scale for corporate debt. The rating scale is for Moody’s. Both Standard and Poor’s and Fitch have similar debt rating scales. * 8.7.3 Corporate Bonds: Debt Ratings * 8.7.3 Corporate Bonds: Debt Ratings (cont.) * 8.8 Financial Guarantees for Bonds Some debt issuers purchase financial guarantees to lower the risk of their debt. The guarantee provides for timely payment of interest and principal, and are usually backed by large insurance companies. Financial guarantees were developed in 1970s to insure municipal bonds and expanded to cover many corporate bonds as well later on. * 8.9 Bond Yield Calculations Bond yields are quoted using a variety of conventions, depending on both the type of issue and the market. We will examine two