Mortgage Backed Securities
Mortgage backed securities offer attractive credit risk but that doesn’t mean they’re risk free. The direction of interest rates and pre-payment risks are hugely important when deciding whether to invest…
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Term Loans and Bank Loans: Alternative Investments
Creditworthy corporations can access capital through a variety of means, including bank loans, term loans and the issuance of bonds. These bank loans can also offer solid investment opportunities. Uses…
Junk Bonds: High-Yield Bonds, Credit Quality, and Risk
Junk bonds are speculative but investors find them attractive as credit risk can be more than compensated for by their higher yields. But most individual investors should steer clear due…
Extendable and Retractable Bond: Maturity Date Definition
An extendable or retractable bond offers investors the opportunity to take advantage of movements in interest rates. However, the extension or retraction feature means that the price of these bonds…
What are convertible bonds?
Convertible bonds are fixed income securities with equity features, since they can be turned in common stock. They can provide a higher current yield and less downside, and are usually valued through a “breakeven” analysis.
Issuing a Foreign Bond
Governments, corporations want to fund their needs at the lowest possible absolute rate. And that is why they tap outside markets and currencies and issue a foreign bond. What is…
