Pricing European High-Yield New Issues
| Autor: | M. Christopher Garman |
|---|---|
| Rok vydání: | 2000 |
| Předmět: | |
| Zdroj: | The Journal of Fixed Income. 9:35-42 |
| ISSN: | 2168-8648 1059-8596 |
| DOI: | 10.3905/jfi.2000.319252 |
| Popis: | European high-yield bonds are unique, and the dynamics of the European speculative-grade market are different from those in the United States. By looking at the influences that affect high-yield new issue pricing in this market, the author intends to clarify these differences. His study of two and a half years of recent new issues examines both company-specific and environmental factors. A significant amount of the variance in the new issue pricing can be quantified by four factors: the bond9s average normal credit rating; the prevailing secondary market yield spread of European high-yield bonds; the principal size of the offering; whether the bond is deferred-interest coupon. The remaining variance is attributable to less quantifiable factors that are more under an underwriter9s control. |
| Databáze: | OpenAIRE |
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