This paper uses in-depth interviews with Finance Directors from UK firms that have recently issued convertible preference shares. The study examines the particular circumstances that were taken into account into the decision to issue convertible preference shares rather than the more common instruments of pure debt or pure equity. The paper relates the findings from the interviews to three theo...

a r t i c l e i n f o Keywords: Estimation of term structure of interest rate Financial reforms Latent factor extraction Level Monetary policy Yield curve movements The article identifies principal reasons underlying the movements of yield curve for government debt market in India for the period Jul '97 to Dec '11. The study finds that though statistically Svensson's (SV) (1994) model outperfor...

We study a novel aspect of a firm’s capital structure, namely the profile of its debt maturity dates. In a simple theoretical framework we show that the dispersion of debt maturities constitutes an important dimension of capital structure choice, driven by firm characteristics and debt rollover risk. Guided by these results we establish two main empirical results. First, using an exogenous shoc...

payment order in eft can be a negotiable instrument in two ways; it can be an instrument based on custom and regulation meaning that whether it should be considered as new instrument or be incorporated in one of the current instruments. in light of iranian legal system and against common law, it is not acceptable that a new negotiable instrument be created by custom because some characteristics...

I extract credit pricing information from the prices of callable corporate debt, by disentangling the components of callable corporate bond prices associated with discounting at market interest rates, discounting for default risk, and optionality. The results include the first empirical analysis, in the setting of standard arbitrage-free term-structure models, of the time-series behavior of cal...

This paper examines whether a specific risk premium associated with “odious” sovereign debt issued by dictators exists. Bondholders could indeed require a premium to compensate for the higher default risk due to the odious character of the debts. The paper quantifies the risk premium required by investors to hold debts which could be denounced as odious and analyses ...

How did the crisis impact financial intermediation? We address this question by studying a unique market segment, viz. foreign private debt issued in the U.S, which grew in size despite the financial crisis. Specifically foreign private (or Rule 144A) debt issued in U.S. registered over a five-fold increase compared to public (or Yankee) debt between pre-crisis and crisis periods, while at the ...

Financial instruments are one of the fundamental dimensions of financial markets that guarantee their efficiency and effectiveness of these markets. These instruments playe a main role in economy to direct money from saving sources to investment needs. These instruments provide possibility of financing companies from public and private sources and also are considered as investment instruments f...

Aiyagari (1992) shows that equilibria are nonoptimal for an overlapping generations economy if and only if Walras’ Law fails. We demonstrate that this failure represents an earnings opportunity exploitable by unsecured debt issue. When unsecured debt is issued, Walras’ Law holds. JEL Classification: D5, D6, D9