Media – Blog
November 12, 2004
Introduction Corporate treasurers frequently make investment decisions based on debt ratings from nationally recognized statistical rating agencies, namely Moody’s, Standard & Poor’s, and Fitch. This article addresses the credit risks of Auction Rate Securities (ARS) that are not adequately addressed by long-term credit ratings alone in short-term investment selections. Long-Term
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November 5, 2004
There are several portfolio management techniques available to help diminish the risk presented by higher interest rates. If fact, when managing portfolio duration, yield curve positioning and security selection properly, rising interest rates can add value, particularly for short duration or held-to-maturity portfolios. Duration Management Though it is extremely difficult
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October 31, 2004
What is a Make-Whole Call? A make-whole call is a type of call provision in a bond allowing the borrower to pay off remaining debt early. The borrower has to make a lump sum payment to the holder derived from an earlier agreed upon formula based on the net present
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October 4, 2004
The latest debacle at Fannie Mae is perhaps the deadliest in its existence as a Government Sponsored Enterprise (GSE). The latest discoveries by the Office of Federal Housing Enterprises Office (OFHEO) could ignite a firestorm that may result in dramatic makeovers at the very heart of the organization. As a
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September 10, 2004
What are Treasury Inflation-Protected Securities? Treasury Inflation Protected Securities (TIPS), are inflation-indexed government bonds whose principal amount is adjusted periodically for inflation. A fixed interest rate is paid semi-annually on the adjusted amount. They may also be referred as Treasury Inflation-indexed Securities (TIIS). Overview of the TIPS Market Established in
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January 9, 2004
What is 4(2) Commercial Paper? Commercial Paper is a short-term unsecured promissory note to repay a fixed amount on a certain future date. The product is exempt from SEC registration according to one of the following sections of the Securities Act of 1933: 3(a)(3), 4(2), and 3(a)2. Today, the US
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July 29, 2003
Moody’s Review for Downgrade and Fitch Rating Watch Negative: AMS-3, 2003, LP, Class A-1 auction rate note (Aaa/AAA) AMS-3, 2003, LP, Class A-2 auction rate note (Aaa/AAA) AMS-3, 2003, LP, Class A-3 auction rate note (Aaa/AAA) AMS-3, 2003, LP, Class A-4 auction rate note (Aaa/AAA) AMS-3, 2003, LP, Class B
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May 8, 2003
Introduction Broker-dealers market Auction Rate Securities (ARS) to corporate clients as yieldier alternative investments to high-quality cash management vehicles. While the securities' yield advantage over very short-duration (generally 28 or 35 days) bonds is possible, the brokers often fail to point out the price an investor pays in terms of
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