Corporate Bonds von Edu Pristine

Dozent des Vortrages Corporate Bonds

Edu Pristine

Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading International Training providers for Finance Certifications like FRM®, CFA®, PRM®, Business Analytics, HR Analytics, Financial Modeling, Operational Risk Modeling etc. It was founded by industry professionals who have worked in the area of investment banking and private equity in organizations such as Goldman Sachs, Crisil - A Standard & Poors Company, Standard Chartered and Accenture.

EduPristine has conducted corporate training for various leading corporations and colleges like JP Morgan, Bank of America, Ernst & Young, Accenture, HSBC, IIM C, NUS Singapore etc. EduPristine has conducted more than 500,000 man-hours of quality training in finance.
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... (Confidential) 1 Agenda: Introduction to corporate bonds ...

... multiples thereof. Indenture is a contract that states the promises of the corporate bond issuer and the rights of the bond holder. As the indenture is hard to interpret, a third party called the trustee is introduced. The basic functions of a trustee are: To authenticate the bonds issued; the trustees keep a ...

... semiannually. For example, for a 6% coupon rate bond with a face value of $10 00 would pay $30 every six months. Some bonds, known as participating bonds, receive payments that are greater than the coupon. These payments depend on the profits of the issuer. Income bonds pay coupon interest if earnings of the issuing company are sufficient. It is not mandatory. Failures to pay ...

... securities of other companies which it owns. Equipment Trust Certificates: A Bond issued by railway companies where the collateral is cars and locomotives is an example of Equipment Trust Certificates ( ETCs). This method of financing is called rolling stock. Debenture Bonds: Debenture bonds are unsecured bonds. Most corporate bond is sues are debentures. They are traded at higher yields than secured debt. Debenture bonds however, have ...

... namely those mechanisms that are included in the bond’s indenture and those that are not included in the bond’s indenture. The methods included in the bonds indenture are: Call and refunding provision - Sinking Funds - Maintenance and Replacement Funds - Redemption through sale ...

... present value of cash flows at a particular discount rate. This discount rate would be the yield on a comparable maturity Treasury bond with a spread. This spread is known as the make-whole call premium. There are two ways to arrive at the Treasury bond yield: Using the Constant-Maturity Treasury rate, published weekly by the FED, for a maturity closest to that of the issue or ...

... with a 20 year maturity, the sinking fund provision may state to retire $5 Million every 5 years. From a bondholder’s perspective there are two advantages of a sinking fund provision: Reduced default risk - Bond price increases near retirement dates as a result of excess demand because of the issuer buying bonds in the open market. However the sinking fund provision can be a disadvantage to t he bondholder if their bond is to ...

... credit spreads used in the marking to market. Factors affecting credit spread risk: Macroeconomic factors - Level and slope of treasury yield curve - Business cycle - Consumer confidence - Issue-Specific factors - Corporation’s financial position - Future prospects of the firm and its industry - A measure of credit spread ...

... issuers that default total number of issuers at the beginning of issue Dollar default rate = Cumulative dollar value ...

... 89 Agenda Introduction to corporate bonds interest ...

... multiples thereof Indenture is a contract that states the promises of the corporate bond issuer and the rights of the bond holder. As the indenture is hard to interpret, a third party called the Trustee is introduced. The basic functions of a trustee are: To authenticate the bonds issued; the trustees keep ...

... semi-annually. For example, for a 6% coupon rate bond with a face value of $1000 would pay $30 every six months. Some bonds, known as participating bonds, receive payments that are greater than the coupon. These payments depend on the profits of the issuer. Income bonds pay coupon interest if earnings of the issuing company are sufficient. It is not mandatory. Failures to ...

... securities of other companies which it owns. Equipment Trust Certificates: A Bond issued by railway companies where the collateral is cars and locomotives is an example of Equipment Trust Certificates ( ETCs). This method of financing is called rolling stock Debenture Bonds: Debenture bonds are unsecured bonds. Most corporate bond issues are debentures. They are traded at higher yields than secured debt. Debenture bonds however, ...

... those mechanisms that are included in the bond’s indenture and those that are not included in the bond’s indenture. The methods included in the bonds indenture are: Call and refunding provision - Sinking Funds - Maintenance and Replacement Funds - Redemption through sale ...

... the present value of cash flows at a particular discount rate. This discount rate would be the yield on a comparable maturity Treasury bond with a spread. This spread is known as the make-whole call premium. There are two ways to arrive at the Treasury bond yield: Using the Constant-Maturity Treasury rate, published weekly by the FED, for a maturity closest to that of the issue or ...

... a 20 year maturity, the sinking fund provision may state to retire $5 Million every 5 years. From a bondholder’s perspective there are two advantages of a sinking fund provision: Reduced default risk. Bond price increases near retirement dates as a result of excess demand because of the issuer buying bonds in the open market. However the sinking fund provision can be a disadvantage to the bondholder if their bond is to ...

... in the marking to market. Factors affecting credit spread risk: Macroeconomic factors - Level and slope of treasury yield curve – Business cycle – Consumer confidence - Issue-Specific factors– Corporation’s financial position – Future prospects of the firm and its industry - A measure of ...

... issuers that default. Total number of issuers at the beginning of issue. Dollar default rate = Cumulative dollar value of ...