Convertible bonds as backdoor equity financing

Article Abstract:

Business enterprises saw convertible bonds as an attractive alternative to equity and debt issues, especially when employed with a call provision which permitted early forced conversion. High-leveraged, highly volatile firms with large research and development (R&D) portfolios and above-average intangible asset levels were most likely to issue convertibles because a convertible issue led to a less negative announcement effect than an equally large equity issue. Convertibles were used to raise equity on a 'delayed action' basis, and most issues were forcibly converted soon after their call protection periods expired.

Finance, Business enterprises, Convertible bonds

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An adverse-selection model of bank asset and liability management with implications for the transmission of monetary policy

Article Abstract:

Banking systems can experience liquidity constraints arising from adverse selection even if these institutions are stable with their finances. As a result, these issues, such as those due to information problems, could subdue their lending schemes as they find it demanding to raise funds from individual investors. However, despite being short of these funds, which they lend to bank-dependent corporations, banks can negate this problem and still be able to lend through the utilization of insured deposits.

Asset & Risk Management, Models, Management, Liquidity (Finance), Bank management, Bank assets

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Disagreement and the stock market

Article Abstract:

The effects of behavioral pricing of stocks by asset managers on the trends prevailing in the American stock markets are described.

United States, Commercial Banks, Investment Banking and Securities Dealing, Forecasts, trends, outlooks, Portfolio Management, Portfolio & Funds Management, Psychological aspects, Forecasts and trends, Market trend/market analysis, Behavioral assessment, Stock markets, Stock market, Behavioural assessment

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