Narrow search
Showing 1 - 10 of 690,720
Cover Image
The Mills Ratio and the Behavior of Redeemable Bond Prices in the Gaussian Structural Model of Corporate Default
Spencer, Peter - 2017
This paper shows that forward default intensities in the Black and Cox (1976) model of corporate default can be expressed in terms of the Mills Ratio (Mills, 1926). The behavior of the forward default intensity and hence the survivorship functions then follows from inequalities that are...
Persistent link: https://www.econbiz.de/10012954783
Cover Image
Bond Covenants, Bankruptcy Risk, and the Cost of Debt
Mansi, Sattar; Qi, Yaxuan; Wald, John K. - 2021
bond covenants, we document that four out of 24 restrictions are associated with significantly higher bankruptcy risk. The … bankruptcy, or within-creditor conflicts. Firms that use In-House Counsel to help structure their bond issue and those that use … use of these Default Indicating covenants is associated with higher bond and CDS spreads. Overall, the results help …
Persistent link: https://www.econbiz.de/10013252096
Cover Image
Preferential Credit Treatment, Bond Valuations, and Distressed Exchanges
Sarmiento, Camilo - 2018
This paper uses Duffie and Singleton (1999) discount model for defaultable bonds to infer the presence of a preferential credit treatment (PCT) for Multilateral Development Banks (MDBs) in loss given default (LGD) space. The main inferences from the paper are twofold. -1- Lower lending fees in...
Persistent link: https://www.econbiz.de/10012907797
Cover Image
Securities laws and the choice between loans and bonds for highly levered firms
Prilmeier, Robert; Stulz, René M. - 2019
In contrast to bonds, cov-lite loans do not require SEC registration and are not subject to securities laws. We show that this distinction plays an important role in firms' choice between funding through cov-lite loans and bonds and helps understand why the market share of cov-lite loans has...
Persistent link: https://www.econbiz.de/10012101811
Cover Image
Why do (or do not) banks share customer information? : A comparison of mature private credit markets and markets in transition
Major, Iván (contributor) - 2006
Credit bureaus administering information sharing among lenders about customers reduce information asymmetry and should be key to modern credit markets. In contrast to former studies, we show that willingness to share information depends more on institutions and market concentration than on...
Persistent link: https://www.econbiz.de/10003435416
Cover Image
Why do (or do not) banks share customer information? A comparison of mature private credit markets and markets in transition
Major, Iván - 2006
Credit bureaus administering information sharing among lenders about customers reduce information asymmetry and should be key to modern credit markets. In contrast to former studies, we show that willingness to share information depends more on institutions and market concentration than on...
Persistent link: https://www.econbiz.de/10010494344
Cover Image
Pricing Corporate Defaultable Bond Using Declared Firm Value
O., Hyong-Chol - 2013
We study the pricing problem for corporate defaultable bond from the viewpoint of the investors outside the firm that … could not exactly know about the information of the firm. We consider the problem for pricing of corporate defaultable bond … determined by the declared firm value. Here we provide a partial differential equation model for such a defaultable bond and give …
Persistent link: https://www.econbiz.de/10013074937
Cover Image
Sukuk Defaults : On Distress Resolution in Islamic Finance
van Wijnbergen, Sweder - 2016
Islamic strictures require investors to share risks with the entrepreneurs they finance. Sukuk (Islamic securities) come mostly in two varieties, musharakah (basically a joint venture agreement) and ijarah (more like an operational lease agreement). Yet defaults did happen, even in the case of...
Persistent link: https://www.econbiz.de/10013007377
Cover Image
Bankruptcy Courts and the Marketization of Bond Issuance
Huang, Xinyi; Teng, Fei; Xin, Yu; Xu, Liping - 2023
PurposeThis paper aims to study the effect of the establishment of bankruptcy courts on bond issuance market. This … implicit government guarantees and promote the development of the high-risk bond market.Design/methodology/approachThis paper … bond issuance data. Using bonds issued in China between 2018 and 2020, the impact of bankruptcy courts on the bond issuance …
Persistent link: https://www.econbiz.de/10014352591
Cover Image
An economic response to unsolicited communication
Van Alstyne, Marshall; Loder, Thede C.; Walsh, Rick - 2011
propose an "Attention Bond," allowing recipients to define a price that senders must risk to deliver the initial message. The …
Persistent link: https://www.econbiz.de/10010195139