O'Reilly logo

The Handbook of Fixed Income Securities, Eighth Edition, 8th Edition by Steven V. Mann, Frank J. Fabozzi

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTERTWENTY-TWOCOVERED BONDS

VINOD KOTHARI

Financial Consultant and Visiting FacultyIndian Institute of Management Calcutta, India

As financial intermediaries create and hold financial assets, they search for a variety of ways to refinance them. Corporate bonds are the most traditional form of capital market-based refinancing. However, corporate bonds are a direct exposure on the issuer and are directly affected by the financial strength of the issuer. The issuer’s rating determines the rating of corporate bonds. Obviously, over a period of time till maturity, these bonds are affected by the changes in the rating of the issuer, as also is the probability of default.

A country’s financial system may, for a variety of reasons, want financial ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required