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Why is corporate long-term debt riskier than US government long-term debt?
Wiki User
∙ 14y ago
A significant part of the equation to evaluate risk of long-term debt is the reliability of the organization issuing that debt and the likelihood of paying back that debt. In most cases, investing in the US Government is a lower risk than investing in a corporation.
Wiki User
∙ 14y ago
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Why would one need debt securities?
Most debt securities are traded electronically. Debt securities are usually in the form of bonds. They can be a government sponsored bond, corporate bond, or a municipal bond.
Which bonds will have the higher coupon rate a secured debt or a debenture?
i guess debenture, since its more riskier!
Colemans preferred stock is riskier to investors than its debt yet the yield to investors is lower than the yield to maturity on the debt Does this suggest that you have made a mistake?
Corporate investors own most preferred stock, because 70 percent of preferred dividends received by corporations are nontaxable. Therefore, preferred often has a lower before-tax yield than the before-tax yield on debt issued by the same company. Note, though, that the after-tax yield to a corporate investor and the after-tax cost to the issuer are higher on preferred stock than on debt.
What is the wholesale debt market in NSE?
At present, much of the trading activity on the wholesale debt market segment on the NSE is confined to Government of India securities. Only a few corporate debt papers find place in some regular trading.
What are the benefits of corporate debt restructuring?
You can save a lot of money if you restructure your corporate debt. You will improve your cashflow, and you will also look more attractive to banks if you need more loans.
Why is corporate long term debt riskier than government long term debt?
A significant part of the equation to evaluate risk of long-term debt is the reliability of the organization issuing that debt and the likelihood of paying back that debt. In most cases, investing in the US Government is a lower risk than investing in a corporation.
Why would one need debt securities?
Most debt securities are traded electronically. Debt securities are usually in the form of bonds. They can be a government sponsored bond, corporate bond, or a municipal bond.
Which bonds will have the higher coupon rate a secured debt or a debenture?
i guess debenture, since its more riskier!
Colemans preferred stock is riskier to investors than its debt yet the yield to investors is lower than the yield to maturity on the debt Does this suggest that you have made a mistake?
Corporate investors own most preferred stock, because 70 percent of preferred dividends received by corporations are nontaxable. Therefore, preferred often has a lower before-tax yield than the before-tax yield on debt issued by the same company. Note, though, that the after-tax yield to a corporate investor and the after-tax cost to the issuer are higher on preferred stock than on debt.
What type of liability so stockholders have when it comes to corporate debt ad responsibility?
what type of liability do stockholders have when it comes to corporate debt and responsibility
What is the wholesale debt market in NSE?
At present, much of the trading activity on the wholesale debt market segment on the NSE is confined to Government of India securities. Only a few corporate debt papers find place in some regular trading.
What is underwriting corporate debt?
It's when you have sexual intercourse with it.
What is the difference between government securities market and corporate debt securities market?
Government Securities Market : Consists of securities issued by the State government and the Central government. This include Central Government securities, Treasury bills and State Development Loans. Debt securities market : Is a market for the issuance, trading and settlement in fixed income securities of various types. Fixed income securities can be issued by a wide range of organizations including the Central and State Governments, public bodies, statutory corporations, banks and institutions and corporate bodies.
What are the benefits of corporate debt restructuring?
You can save a lot of money if you restructure your corporate debt. You will improve your cashflow, and you will also look more attractive to banks if you need more loans.
Define debt market?
The debt market is the market for trading debt securities. The debt market thus involves corporate bonds, government bonds, municipal bonds, negotiable certificates of deposit, and various money market investments. The debt market also includes individual loans bought from lenders and often packaged together in large amounts.
solvency analysis?
this is an analysis of leverage of a company. it also shows if a company is financed by debt or by equity. debt financed companies are riskier compared to equity financed companies. some ratios calculated here are:a) Debt equity ratioDebt equity ratio = Total debt / Total equityb) Debt ratioDebt ratio = Total debt / Total assets
What do corporate bond funds own?
Corporate bond funds invest in a combination of corporate debt, U.S. treasury bonds, or other federal bonds
