Search: bond
RBA Glossary definition for bond
bond – In general terms, a bond is a statement of debt with a medium to long term to maturity at the time it is issued. The holder of a bond is a lender to the issuer. As such, the statement gives the issuer an obligation to provide the holder with an income payment and/or a stream of income payments over the life of the bond and to repay the principal. The risk that the issuer cannot fulfil their obligation varies from issuer to issuer and over time.
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Appendix B: A Cross-sectional Analysis of Bond Spreads
31 Dec 2004
RDP
2004-02
RDP 2004-02: The Impact of Rating Changes in Australian Financial Markets Appendix B: A Cross-sectional Analysis of Bond Spreads. ... Our sample comprises the 466 bonds that appeared in the Merrill Lynch Australian corporate bond index at the end of each
https://www.rba.gov.au/publications/rdp/2004/2004-02/appendix-b.html
Results
31 Dec 2004
RDP
2004-02
Download the Paper 329. KB. Given that ratings relate specifically to bonds rather than equities, we present the results for bond yields first. ... Table 1: Changes in Bond Spreads around Rating Announcements. Days relative to event.
https://www.rba.gov.au/publications/rdp/2004/2004-02/result.html
The Impact of Rating Changes in Australian Financial Markets
1 Mar 2004
RDP
2004-02
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/2004/2004-02.html
Data
31 Dec 2004
RDP
2004-02
More importantly, since corporate bonds are traded much less actively than equities and are not traded in a centralised exchange, it is difficult to get good daily data for bond prices ... Indeed, the investment banks that calculate corporate bond
https://www.rba.gov.au/publications/rdp/2004/2004-02/data.html
The Impact of Rating Changes in Australian Financial Markets
1 Mar 2004
RDP
2004-02
Research Discussion Paper – RDP 2004-02 The Impact of Rating Changes in Australian Financial Markets. Adam Creighton. and Anthony Richards. March 2004. 329. KB. We thank Kirk Bailey, Liz Dixon Smith, Keith Hall, Marianne Gizycki, Philip Manners,
https://www.rba.gov.au/publications/rdp/2004/2004-02/
Methodology
31 Dec 2004
RDP
2004-02
market. The reason for considering spreads rather than bond returns is that the bonds in our sample have a range of maturities, so we would expect that a given impact on ... required bond yields or spreads would have different effects on the prices of
https://www.rba.gov.au/publications/rdp/2004/2004-02/methodology.html
Conclusion
31 Dec 2004
RDP
2004-02
Bond spreads appear to widen in response to ratings downgrades and contract with upgrades. ... However, the finding is also suggestive of some form of segmentation between the markets for corporate bonds and equities, whereby bond investors fail to
https://www.rba.gov.au/publications/rdp/2004/2004-02/conclusion.html
Appendix A: Further Description of Events
31 Dec 2004
RDP
2004-02
Download the Paper 329. KB. Both bond and equity events can be classified according to their type and their source (Tables A1 and A2). ... The bond events apply to 19 different firms compared to 62 firms for equity events.
https://www.rba.gov.au/publications/rdp/2004/2004-02/appendix-a.html
Previous Literature
31 Dec 2004
RDP
2004-02
Due to data availability problems with bonds (which we discuss in Section 4), a larger number of studies of announcement effects have actually used equity returns rather than bond market data. ... in the same way as bond prices, rising following upgrades
https://www.rba.gov.au/publications/rdp/2004/2004-02/previous-literature.html
References
31 Dec 2004
RDP
2004-02
Cantor R, C Mahoney and C Mann (2003), ‘Are corporate bond ratings procyclical?’, Moody's Investor Services Special Comment, October. ... Kliger D and O Sarig (2000), ‘The information value of bond ratings’, The Journal of Finance, 55(6), pp
https://www.rba.gov.au/publications/rdp/2004/2004-02/references.html