Market for Corporate Bonds
Write some point regarding Market for Corporate Bonds.
Expert
Market for Corporate Bonds:
• At the end of year 2007, the amount of corporate and foreign debt exceptionally was $10.1 trillion, making it the second biggest part of U.S capital market. The biggest was the market for corporate equity, with a value of $20.8 trillion. Finally, the market for state and local government debt totaled around $2.1 trillion.
• The biggest investors in corporate bonds are life insurance companies and pension funds, with trades in such market tending to be in much large blocks of securities.
• Less than 1 % of all corporate bonds are traded on exchanges. Most of the secondary market transactions for corporate bonds occur via dealers in over-the-counter (OTC) market.
• Only a small number of net bonds which exist really trade on a single day. As an outcome, the market for corporate bonds is thin as compared to the market for corporate stocks or money market securities.
• Corporate bonds are very less marketable than the securities which encompass higher daily trading volumes.
• The prices in corporate bond market as well tend to be more volatile than securities sold in markets with higher trading volumes.
• The market for corporate bonds is not as proficient as that for stocks sold on the main stock exchanges or highly marketable money market instruments like U.S. Treasury securities.
Who was the first to quantify the idea of Brownian motion?
Which parameter good measures value creation; the Economic Value Added (EVA), the CVA (Cash Value Added) or the economic profit?
Task Description Length: 1000-2000 words (up to 500 words above 2000 permitted) Description: • Complete this assignment in groups of 4-5 students. • Maintain a portfolio of financial issues taken from 8 news sources. • Analyse the articles with reference to theory covered in class and h
What impacts have on the value of a business of high inflation?
Who explained the high-peak/fat-tails?
Various broad research methodologies are available with which to study the development of accounting theory. a. Discuss the deductive, inductive, normative, and empirical research methods.
Discuss how management’s discretion in applying accounting rules can mislead investors. Provide three examples and how the discretion can distort results?
Atlanta Company stock is predicted to follow an exponential growth rate. The relationship among the current stock price P0, future price PT after time T, and continuously compounded rate of the return r, is: PT = P0eγT. The stock doesn’t pay any
For XYZ Corporation debt-to-equity ratio, marginal tax rate, and dividend payout ratio are all of 40%. The cost of debt is 10%. Cambria contains 1 million shares of common stock, and $25 million in long-term bonds. Its dividend is $1 per share. Determine the EBIT and
Does the equity of shareholders represents the savings a company has accumulated by the years?
18,76,764
1942269 Asked
3,689
Active Tutors
1440038
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!