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Book The Role of Junk Bonds in Corporate Finance

Download or read book The Role of Junk Bonds in Corporate Finance written by Valea Adams and published by GRIN Verlag. This book was released on 2017-01-04 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2016 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,3, The FOM University of Applied Sciences, Hamburg, language: English, abstract: With this paper I would like examine the role of junk bonds in corporate finance. Starting with the term “Corporate Finance” in general, enlarging upon the objectives as well as long term and short term decisions of this field, the assignment continues by defining junk bonds and by giving an insight into the field of so called Fallen Angels. As the expansion of the junk bond market over the last decades has proceeded, I would like to take this occasion to provide background information about the changing role of high-yield bonds during the years. In the last chapter of this paper I will elaborate on the role of junk bonds in corporate finance and as part of the portfolio. Companies in the United States and elsewhere are increasingly turning towards the bond markets as a predominant source of corporate finance referring to changing market conditions. Various reasons such as merger and acquisition activities, capital expenditures, or working capital needs, have contributed to the fact that corporate entities have always needed funds. During the decades, high-yield bonds have survived a dramatic rise and fall in popularity and heated controversy to the limit. The leveraged finance market as a segment of the general credit market, involves issuers, usually considered more risky and with a lower credit ranking than its counterparts, as well as investors, expecting a higher rate on return potential. Investors are attracted to many forms of bonds, but one threat, concerning all leveraged finance investors is that they all have a comparatively high return objective. Many analysts still hold back from the analyst of junk bonds, which can be a result of the bond’s rating that is below the investment grade and therefore known as having very high investment risks. However, the potential rewards of this specific field of credit analysis are worth the time invested. A new emission volume has been pushed by debt financing activities and maintained by high investor demands, looking for yield in the consisting low interest rate environments.

Book The role of Junk Bonds in Corporate Finance

Download or read book The role of Junk Bonds in Corporate Finance written by Uwe Schindler and published by GRIN Verlag. This book was released on 2008-03-07 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2008 in the subject Business economics - Investment and Finance, grade: 1,3, The FOM University of Applied Sciences, Hamburg, course: Master of Business Administration (MBA), language: English, abstract: Financing the activities of companies is nowadays one of the most important challenges in Corporate Finance. More and more companies and investors use Junk Bonds as a stable part of their financial sourcing activities in Corporate Finance. The use of Junk Bonds is as a source for financing such activities like takeovers, merger and acquisitions, and restructuring instead financing activities by conventional bank credits established. This tool provides benefits and risks to both parties – buyers and issuers. The assignment at hand surveys some information about the role of Junk Bonds in Corporate Finance by focusing on risks and benefits from different perspectives.

Book Junk Bonds

    Book Details:
  • Author : Glenn Yago
  • Publisher : Oxford University Press, USA
  • Release : 1991
  • ISBN : 019506111X
  • Pages : 264 pages

Download or read book Junk Bonds written by Glenn Yago and published by Oxford University Press, USA. This book was released on 1991 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: The junk bond, the fastest growing financial instrument of the 1980s, as been linked to all that is wrong with Wall Street. But in Junk Bonds, economist Glenn Yago argues that, despite the bad press, these high yield securities are still one of the most efficient and equitable ways for American companies to finance their futures. Yago points out that, before junk bonds, conservative investors like insurance companies, pension funds, and bank trust departments placed their capital primarily in investment-grade securities--and only five percent of the American companies with sales over $35 million qualify to issue investment grade bonds. In effect, ninety-five percent of the nation's mid-sized firms were frozen out of the public debt market. Junk bonds changed all that. In addition, Yago argues that the much-maligned divestitures associated with junk bond-funded buyouts were not necessarily destructive; many sold-off units, he writes, flourished under new management structures. Yago concludes that we have witnessed a fundamental restructuring of corporate America, made possible in part by high yield financing. The result is a bright future as American businesses return to productivity and competitiveness, one that will benefit managers, stockholders, and workers alike.

Book Beyond Junk Bonds

Download or read book Beyond Junk Bonds written by Glenn Yago and published by Oxford University Press. This book was released on 2003-03-27 with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Book Investing in Junk Bonds

Download or read book Investing in Junk Bonds written by Edward I. Altman and published by Beard Books. This book was released on 2003 with total page 278 pages. Available in PDF, EPUB and Kindle. Book excerpt: Details the rise and operation of the high yield debt market as illustrated by the "junk" bond.

Book How to Make Money with Junk Bonds

Download or read book How to Make Money with Junk Bonds written by Robert Levine and published by McGraw Hill Professional. This book was released on 2012-05-18 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: Unearth a Gold Mine in the $1 TRILLION Junk Bond Market “Few experts in this area have been willing to share their inside knowledge with the outside world. None have done it as well and as simply and clearly as Bob Levine has done in his new book.” —Joel Greenblatt, bestselling author of The Little Book That Beats the Market “A great book by a great investor. . . . [I] recommend this book to everyone who wants to acquire some invaluable horse sense about investing in high yield bonds.” —Martin S. Fridson, author of How to Be a Billionaire “This is the best book ever written on high yield corporate bond investing. Destined to become an instant classic. . . .” —Jack Malvey, Chief Global Markets Strategist, Bank of New York Mellon Corp. "A first-rate introduction and navigation guide to the high-yield world." —Reading the Markets “This well-written and occasionally humorous tutorial on investing in speculative-grade corporate debt covers the essential aspects of high-yield debt. . . . As a basic introduction to the high-yield debt market, the book can’t be beat.” —The Financial Analysts Journal Do you think of the junk bond market as an arena of chaos, a financial Wild West, a place to avoid at all costs? In How to Make Money with Junk Bonds, a pioneer of the junk bond business gives you the insight and information you need to lay that fear to rest—so that you can generate unprecedented profits in this $1 trillion market. Robert Levine has the credentials to lead both individual investors and the professionals just getting started in the junk bond market. At Nomura Corporate Research and Asset Management, his junk bond funds substantially outperformed both high yield and S&P indices for more than 18 years—and in this book he explains the method he used to achieve such remarkable results. Helping you pick high yield bonds that have a low possibility of default. How to Make Money with Junk Bonds covers: The difference between stocks and bonds—and where junk bonds fit between them in the risk spectrum How to conduct a thorough credit analysis—the key to making money in junk bonds How to evaluate market conditions—and decide when to invest and when to sit on the sidelines Why you should hire a portfolio manager—and how to select the best one for your needs How to invest like a pro—using Levine’s personal, proven investing method The junk bond market isn’t the scary place it used to be. Critical information is easier (and cheaper) to obtain, and transparency is greater than it was in the market’s early days. How to Make Money with Junk Bonds gives you the tools to root out strong, forward-looking companies poised for growth and generate a level of profitability impossible to achieve in other markets.

Book The First Junk Bond  A Story of Corporate Boom and Bust

Download or read book The First Junk Bond A Story of Corporate Boom and Bust written by Harlan D. Platt and published by Routledge. This book was released on 2019-07-25 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: A case study of a company that exemplified the 80s.

Book Issues Relating to High yield Securities  junk Bonds

Download or read book Issues Relating to High yield Securities junk Bonds written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on General Oversight and Investigations and published by . This book was released on 1986 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Junk Bonds

Download or read book Junk Bonds written by Steven M. Rubin and published by . This book was released on 1990 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book The Predators  Ball

Download or read book The Predators Ball written by Connie Bruck and published by Simon & Schuster. This book was released on 2020-02-04 with total page 400 pages. Available in PDF, EPUB and Kindle. Book excerpt: “Connie Bruck traces the rise of this empire with vivid metaphors and with a smooth command of high finance’s terminology.” —The New York Times “The Predators’ Ball is dirty dancing downtown.” —New York Newsday From bestselling author Connie Bruck, The Predators’ Ball dramatically captures American business history in the making, uncovering the philosophy of greed that dominated Wall Street in the 1980s. During the 1980s, Michael Milken at Drexel Burnham Lambert was the Billionaire Junk Bond King. He invented such things as “the highly confident letter” (“I’m highly confident that I can raise the money you need to buy company X”) and the “blind pool” (“Here’s a billion dollars: let us help you buy a company”), and he financed the biggest corporate raiders—men like Carl Icahn and Ronald Perelman. And then, on September 7, 1988, things changed... The Securities and Exchange Commission charged Milken and Drexel Burnham Lambert with insider trading and stock fraud. Waiting in the wings was the US District Attorney, who wanted to file criminal and racketeering charges. What motivated Milken in his drive for power and money? Did Drexel Burnham Lambert condone the breaking of laws?

Book HIGH YIELD BONDS

Download or read book HIGH YIELD BONDS written by Mark Shenkman and published by McGraw Hill Professional. This book was released on 1999 with total page 614 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Book Markets for Corporate Debt Securities

Download or read book Markets for Corporate Debt Securities written by T. Todd Smith and published by International Monetary Fund. This book was released on 1995-07-01 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper surveys markets for corporate debt securities in the major industrial countries and the international markets. The discussion includes a comparison of the sizes of the markets for various products, as well as the key operational, institutional, and legal features of primary and secondary markets. Although there are some signs that debt markets may be emphasized in the future by some countries, it remains true that North American debt markets are the most active and liquid in the world. The international debt markets are, however, growing in importance. The paper also investigates some of the reasons for the underdevelopment of domestic bond markets and the consequences of firms shifting their debt financing needs from banks to securities markets.

Book High yield Debt Market junk Bonds

    Book Details:
  • Author : United States. Congress. House. Committee on Energy and Commerce. Subcommittee on Telecommunications and Finance
  • Publisher :
  • Release : 1990
  • ISBN :
  • Pages : 72 pages

Download or read book High yield Debt Market junk Bonds written by United States. Congress. House. Committee on Energy and Commerce. Subcommittee on Telecommunications and Finance and published by . This book was released on 1990 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Corporate Mergers and High Yield  junk  Bonds

Download or read book Corporate Mergers and High Yield junk Bonds written by and published by . This book was released on 1986 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Venture Capital and Junk Bond Financing

Download or read book Venture Capital and Junk Bond Financing written by Frederick D. Lipman and published by . This book was released on 1996 with total page 832 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Leveraged Finance

Download or read book Leveraged Finance written by Stephen J. Antczak and published by John Wiley & Sons. This book was released on 2009-06-10 with total page 371 pages. Available in PDF, EPUB and Kindle. Book excerpt: A timely guide to today’s high-yield corporate debt markets Leveraged Finance is a comprehensive guide to the instruments and markets that finance much of corporate America. Presented in five sections, this experienced author team covers topics ranging from the basics of bonds and loans to more advanced topics such as valuing CDs, default correlations among CLOs, and hedging strategies across corporate capital structures. Additional topics covered include basic corporate credit, relative value analysis, and various trading strategies used by investors, such as hedging credit risk with the equity derivatives of a different company. Stephen Antczak, Douglas Lucas, and Frank Fabozzi present readers with real-market examples of how investors can identify investment opportunities and how to express their views on the market or specific companies through trading strategies, and examine various underlying assets including loans, corporate bonds, and much more. They also offer readers an overview of synthetic and structured products such as CDS, LCDS, CDX, LCDX, and CLOs. Leveraged Finance has the information you need to succeed in this evolving financial arena.

Book A Pragmatist s Guide to Leveraged Finance

Download or read book A Pragmatist s Guide to Leveraged Finance written by Robert S. Kricheff and published by FT Press. This book was released on 2012-02-27 with total page 282 pages. Available in PDF, EPUB and Kindle. Book excerpt: The high-yield leveraged bond and loan market (“junk bonds”) is now valued at $3+ trillion in North America, €1 trillion in Europe, and another $1 trillion in emerging markets. What’s more, based on the maturity schedules of current debt, it’s poised for massive growth. To successfully issue, evaluate, and invest in high-yield debt, however, financial professionals need credit and bond analysis skills specific to these instruments. Now, for the first time, there’s a complete, practical, and expert tutorial and workbook covering all facets of modern leveraged finance analysis. In A Pragmatist’s Guide to Leveraged Finance, Credit Suisse managing director Bob Kricheff explains why conventional analysis techniques are inadequate for leveraged instruments, clearly defines the unique challenges sellers and buyers face, walks step-by-step through deriving essential data for pricing and decision-making, and demonstrates how to apply it. Using practical examples, sample documents, Excel worksheets, and graphs, Kricheff covers all this, and much more: yields, spreads, and total return; ratio analysis of liquidity and asset value; business trend analysis; modeling and scenarios; potential interest rate impacts; evaluating and potentially escaping leveraged finance covenants; how to assess equity (and why it matters); investing on news and events; early stage credit; and creating accurate credit snapshots. This book is an indispensable resource for all investment and underwriting professionals, money managers, consultants, accountants, advisors, and lawyers working in leveraged finance. In fact, it teaches credit analysis skills that will be valuable in analyzing a wide variety of higher-risk investments, including growth stocks.