corporate bonds

This paper discusses the market for borrowing corporate bonds from a major lender. It analyzes the market for borrowing and shorting corporate bonds. The cost of borrowing corporate bonds can be compared to the cost of borrowing stock. Some factors that increase borrowing costs are loan size, percentage of inventory ...

We present a model in which some investors are prohibited from using leverage and other investors’ leverage is limited by margin requirements. The former investors bid up high-beta assets while the latter agents trade to profit from this, but must de-lever when they hit their margin constraints. We test the ...

In order to grow, a company has to invest in many assets such as personnel, equipment and information. This investment stage is often very costly for the company, and the cash flow from the revenue-generating entities ...

Introduction : Corporate bonds issued by companies as an instrument that can be used to keep the company’s cost of debt down on the primary market. Those bonds can be bought by anyone and then sold on the secondary market, just like stocks or any other security. The bondholder is ...