When using this report, investors are advised to consult the accompanying glossary of investment terms. Bond Reports are generally updated on a daily basis. In general the bond market is volatile, and fixed income securities carry interest rate risk. Investments are subject to investment risks including the possible loss of the principal amount invested. Bond investments may be subject, but not limited, to the following investment risks:. Credit and default risk — Corporate bonds are subject to credit risk.
Corporate Bond Yield Curve Papers and Data
Miguel Bombarda, 20, Lisbon, Portugal. We reexamine the relationship between credit spreads and interest rates from a capital gain perspective of bond portfolio. Capital gain sensitivity between US BBB-rated bonds and Treasury bonds is weak and positive in normal periods, but strong and negative during recessions. In the upward phase of business cycles, changes in interest rates are fully reflected in the bond yields, leaving spreads unchanged, while in the downward phase, rates and spreads move in opposite directions. This alternation between two distinct regimes reconciles a long-standing division in the literature. We then discuss the efficiency of shorting Treasury bonds as a hedging strategy and policy suggestions. The postcrisis monetary policy, which resulted into uncertainty regarding further moves in risk-free interest rates, poses questions on the resilience, profitability, and stability of the international financial system, especially in what concerns the financial health of banks and corporate firms.
Bond Markets Essay Example Pdf
The journal aims to provide a forum for publication and dissemination of scientific research conducted in the fields of management, as well as promote the interconnection of academic research with practical reality. It is intended to disseminate the scientific results obtained by academics and professionals, both nationally or internationally. The journal is based on a process of double blind review.
Bonds are loans made to large organizations. These include corporations, cities, and national governments. An individual bond is a piece of a massive loan.