Signaling theory predicts that the stock price reaction to issuance of fixed-rate, non-investment-grade debt would be more unfavorable in an age when interest rate swaps are readily available than in the pre-swap age. This prediction is based on the fact that swaps can be used to hedge long-term...

Purpose – This paper aims to evaluate the risk‐adjusted performance of US‐based international equity funds using objective statistical measures grounded in modern portfolio theory, and to present the results in a manner which is easily understood by the average investor....