Gains from Stock Exchange Integration: The
... Similarly, users that previously had only indirect access to the other markets through members of the local exchange now enjoy direct access, and avoid the previous intermediation costs. This reduction in the costs of access has been particularly beneficial to those members who were not previously a ...
... Similarly, users that previously had only indirect access to the other markets through members of the local exchange now enjoy direct access, and avoid the previous intermediation costs. This reduction in the costs of access has been particularly beneficial to those members who were not previously a ...
The market for borrowing corporate bonds
... determinants of borrowing activity and costs in Section 5. In Section 6, we investigate the relationship between bond and stock shorting. In Section 7, we check if bond short sellers have private information. The next two sections consider how corporate bond shorting relates to the CDS market and wh ...
... determinants of borrowing activity and costs in Section 5. In Section 6, we investigate the relationship between bond and stock shorting. In Section 7, we check if bond short sellers have private information. The next two sections consider how corporate bond shorting relates to the CDS market and wh ...
Volume and Liquidity After Cross
... analyst forecast data. We acknowledge financial support from the Jubiläumsfonds of the Österreichische Nationalbank (Austrian Central Bank) under grant no. 8939. ...
... analyst forecast data. We acknowledge financial support from the Jubiläumsfonds of the Österreichische Nationalbank (Austrian Central Bank) under grant no. 8939. ...
Preferred Habitat and the Optimal Maturity Structure of Government Debt
... agents 1 and 2, and away from agent 3 (through higher taxes), in the state when interest rates are low. We show that an optimal maturity structure implements the complete-markets allocation of Section 3. Thus, the government should issue the quantity of two-period bonds that agent 3 would sell if al ...
... agents 1 and 2, and away from agent 3 (through higher taxes), in the state when interest rates are low. We show that an optimal maturity structure implements the complete-markets allocation of Section 3. Thus, the government should issue the quantity of two-period bonds that agent 3 would sell if al ...
contracts 9,899,780,283 traded
... Euro were all about 40% of what they were in 1999. And the implied spreads for the E-mini S&P and the Eurostoxx contracts were less than 10% of what they were in 1999. These are astonishing improvements. In contrast, crude oil and soybeans, both of which are pit-traded contracts, have become less li ...
... Euro were all about 40% of what they were in 1999. And the implied spreads for the E-mini S&P and the Eurostoxx contracts were less than 10% of what they were in 1999. These are astonishing improvements. In contrast, crude oil and soybeans, both of which are pit-traded contracts, have become less li ...
NBER WORKING PAPER SERIES Kristin J. Forbes Working Paper 13908
... equities and debt securities (both short- and long-term), and also includes reserves held by foreign official institutions. Significant penalties can be imposed for non-reporting, so compliance and data quality are believed to be very good. One concern with the data (as well as with all available da ...
... equities and debt securities (both short- and long-term), and also includes reserves held by foreign official institutions. Significant penalties can be imposed for non-reporting, so compliance and data quality are believed to be very good. One concern with the data (as well as with all available da ...
15-1 CHAPTER 15 Capital Structure: Basic Concepts
... changing the capital structure if and only if the value of the firm increases only to the benefits the debtholders. d. changing the capital structure if and only if the value of the firm increases although it decreases the stockholders' value. e. changing the capital structure if and only if the val ...
... changing the capital structure if and only if the value of the firm increases only to the benefits the debtholders. d. changing the capital structure if and only if the value of the firm increases although it decreases the stockholders' value. e. changing the capital structure if and only if the val ...
Lorem ipsum dolor sit amet, consetetur sadip-scing
... The maturity date of the bonds and the date of the latest closing for issuance (closing date) of an ISIN will be fixed upon commencement of the issuance of bonds of the same ISIN. The period from commencement of issuance of bonds (opening date) until the closing for issuance (closing date) of the sa ...
... The maturity date of the bonds and the date of the latest closing for issuance (closing date) of an ISIN will be fixed upon commencement of the issuance of bonds of the same ISIN. The period from commencement of issuance of bonds (opening date) until the closing for issuance (closing date) of the sa ...
The Effects of Capital Structure Change on Security Prices
... diminishes but does not eliminate the net corporate tax benefit of debt. 4 Moreover, a unique optimal capital structure will often exist in this tax environment, where at the margin, the corporate tax advantage of debt exactly offsets the personal tax disadvantage of holding debt. Given the conflict ...
... diminishes but does not eliminate the net corporate tax benefit of debt. 4 Moreover, a unique optimal capital structure will often exist in this tax environment, where at the margin, the corporate tax advantage of debt exactly offsets the personal tax disadvantage of holding debt. Given the conflict ...
Primary Market
... • So firms will finance these needs with longterm debt or equity. • The cost of these long term financing means is known for the life of the asset • Less refinancing problems • Long terms rates are higher ...
... • So firms will finance these needs with longterm debt or equity. • The cost of these long term financing means is known for the life of the asset • Less refinancing problems • Long terms rates are higher ...
markets work in war
... prices of government bonds traded in both Zurich and Stockholm: the “official” outbreak of the war with the invasion of German forces in Poland in September 1939; the invasion of Benelux and later France in May 1940; and the German defeat at Stalingrad at the beginning of 1943. Traders in Switzerlan ...
... prices of government bonds traded in both Zurich and Stockholm: the “official” outbreak of the war with the invasion of German forces in Poland in September 1939; the invasion of Benelux and later France in May 1940; and the German defeat at Stalingrad at the beginning of 1943. Traders in Switzerlan ...
... denominated in these two currencies. The results of this model show that equilibrium interest rates are affected by price level and real income uncertainty in a systematic way. The analysis of the paper lends support to the macroeconomic portfolio balance models that assume imperfect substitutabilit ...
NBER WOIKING PAPER SERIES RISK OF DEBT REPUDIATION Jeffrey Sachs
... We study a discrete-time growth model of a small country which has access ...
... We study a discrete-time growth model of a small country which has access ...
(Debt/Equity Swap)? - G. William Schwert
... Strategy for Convertibles About 25% of the outstanding shares are not converted 5 years after it would be optimal for shareholders to do so • it costs them 2.5% per year to follow the suboptimal strategy: Table 4 • frequently convertible preferreds sell at discounts from conversion value •transactio ...
... Strategy for Convertibles About 25% of the outstanding shares are not converted 5 years after it would be optimal for shareholders to do so • it costs them 2.5% per year to follow the suboptimal strategy: Table 4 • frequently convertible preferreds sell at discounts from conversion value •transactio ...
Australian Debt Sale Market Overview
... Currently 10% of investment in the Australian debt sale market is contributed from second tier buyers, represented by 20+ entities Involving these participant or other buyers (potentially international) will help to absorb increasing volumes ...
... Currently 10% of investment in the Australian debt sale market is contributed from second tier buyers, represented by 20+ entities Involving these participant or other buyers (potentially international) will help to absorb increasing volumes ...
Lecture 1.Principles of Public Debt
... debt because it is associated with increased risk. To overcome this, the government uses primary dealers who buy and keep big amount of government bonds on their accounts. Two targets of micro-structured finances: Increasing the profitability of entire market Increasing the share of government ...
... debt because it is associated with increased risk. To overcome this, the government uses primary dealers who buy and keep big amount of government bonds on their accounts. Two targets of micro-structured finances: Increasing the profitability of entire market Increasing the share of government ...
E4 - Art Durnev
... has economic life of five years. The cost of the projects is BR40,000,000. At the current exchange rate of BR1.60/C$1.00, the parent firm could raise C$25,000,000 in Canadian capital market by issuing five-year bonds at 8%. The parent then would convert C$ to BR to pay the project cost. The Brazilia ...
... has economic life of five years. The cost of the projects is BR40,000,000. At the current exchange rate of BR1.60/C$1.00, the parent firm could raise C$25,000,000 in Canadian capital market by issuing five-year bonds at 8%. The parent then would convert C$ to BR to pay the project cost. The Brazilia ...
US subprime credit crisis and its implications from a corporate
... No superior ‘after-crisis solution’ exists. The negative effects of a similar turmoil can be alleviated most efficiently by prudent risk management, well before the emergence of such a credit crunch. US subprime credit crisis and its implications from a corporate financing point of view Thilo Kusch ...
... No superior ‘after-crisis solution’ exists. The negative effects of a similar turmoil can be alleviated most efficiently by prudent risk management, well before the emergence of such a credit crunch. US subprime credit crisis and its implications from a corporate financing point of view Thilo Kusch ...
How are stock prices a!ected by the location of trade?
... charters imply that the twins' stock prices should move in lockstep, in a ratio given by the proportional division of cash #ows. Surprisingly, the stock prices of twins do not behave in this manner. Rosenthal and Young (1990) show that the stock prices of Royal Dutch-Shell and Unilever N.V./PLC exhi ...
... charters imply that the twins' stock prices should move in lockstep, in a ratio given by the proportional division of cash #ows. Surprisingly, the stock prices of twins do not behave in this manner. Rosenthal and Young (1990) show that the stock prices of Royal Dutch-Shell and Unilever N.V./PLC exhi ...
united states international university - africa
... COURSE DESCRIPTION Examination of the implications of the globalization of financial markets, financial instruments in a global market, composition of world bond and equity markets, foreign exchange markets, interest rate and currency swaps, global interest rate links, and cross-currency and cross-b ...
... COURSE DESCRIPTION Examination of the implications of the globalization of financial markets, financial instruments in a global market, composition of world bond and equity markets, foreign exchange markets, interest rate and currency swaps, global interest rate links, and cross-currency and cross-b ...
Fundamentals of Corporate Finance
... • While English is the official business language, it is not, however, the world’s social language. • Cultural views also shape business practices and people’s attitudes toward business. • An economic system determines how a country mobilizes its resources to produce goods and services needed by soc ...
... • While English is the official business language, it is not, however, the world’s social language. • Cultural views also shape business practices and people’s attitudes toward business. • An economic system determines how a country mobilizes its resources to produce goods and services needed by soc ...
ECONOMICS-OF-TAWARRUQ-How-its-Mafasid-overwhelm
... proceeds on the basis of debt. Money issued by the central bank, by derived bank deposits as well as money created by the commercial banks are based on debt. As the money supply increases to meet the increasing demand due to increases in population and rising incomes, so do the volume of debts. As w ...
... proceeds on the basis of debt. Money issued by the central bank, by derived bank deposits as well as money created by the commercial banks are based on debt. As the money supply increases to meet the increasing demand due to increases in population and rising incomes, so do the volume of debts. As w ...
Capital Structure
... – Abnormal returns associated with announcements of common stock issues are about -3% – Convertible bonds or convertible preferred: more negative than the associated non-convertible security – Straight debt or preferred stock: insignificantly different from 0 – Issues by utilities are less negative ...
... – Abnormal returns associated with announcements of common stock issues are about -3% – Convertible bonds or convertible preferred: more negative than the associated non-convertible security – Straight debt or preferred stock: insignificantly different from 0 – Issues by utilities are less negative ...
Changes in the investor base for Emerging Market public debt: What
... debt issuance, taxation regimes and reduction in capital controls. And up to 2013, inflows in EM local currency debt markets were also supported by the view that EM currencies will strengthen given EM’s growth differential with developed markets and their lower level of government debt. There is lim ...
... debt issuance, taxation regimes and reduction in capital controls. And up to 2013, inflows in EM local currency debt markets were also supported by the view that EM currencies will strengthen given EM’s growth differential with developed markets and their lower level of government debt. There is lim ...
CPD Quiz - Association of Corporate Treasurers
... The right answer is (c) improving profitability by reducing the weighted average cost of capital Of course all of the areas of responsibility are important, the real question is one of priorities. Reducing the cost of debt can increase profitability but, in practice, the value gains are relatively m ...
... The right answer is (c) improving profitability by reducing the weighted average cost of capital Of course all of the areas of responsibility are important, the real question is one of priorities. Reducing the cost of debt can increase profitability but, in practice, the value gains are relatively m ...
Financial history of the Dutch Republic
The financial history of the Dutch Republic involves the interrelated development of financial institutions in the Dutch Republic. The rapid economic development of the country after the Dutch Revolt in the years 1585 - 1620 accompanied by an equally rapid accumulation of a large fund of savings, created the need to invest those savings profitably. The Dutch financial sector, both in its public and private components, came to provide a wide range of modern investment products beside the possibility of (re-)investment in trade and industry, and in infrastructure projects. Such products were the public bonds, floated by the Dutch governments on a national, provincial, and municipal level; acceptance credit and commission trade; marine and other insurance products; and shares of publicly traded companies like the Dutch East India Company (VOC), and their derivatives. Institutions like the Amsterdam stock exchange, the Bank of Amsterdam, and the merchant bankers helped to mediate this investment. In the course of time the invested capital stock generated its own income stream that (because of the high propensity to save of the Dutch capitalists) caused the capital stock to assume enormous proportions. As by the end of the 17th century structural problems in the Dutch economy precluded profitable investment of this capital in domestic Dutch sectors, the stream of investments was redirected more and more to investment abroad, both in sovereign debt and foreign stocks, bonds and infrastructure. The Netherlands came to dominate the international capital market up to the crises of the end of the 18th century that caused the demise of the Dutch Republic.