Media – Blog
July 17, 2006
Now that Debt Advisors Group, Inc. (DAG) has consulted with more than 354 companies*, we recognize that the relationships we’ve forged with a variety of lenders has been a key to our success. DAG understands not only our clients’ diverse financing needs but also how to match those objectives with
Read more
June 30, 2006
Executive Summary The recent SEC investigation into the auction rate securities market found “industry-wide” violations by 15 major brokerage firms of the Securities Act of 1933. We think that the violations uncovered by the SEC lend evidence to the opinion that the auction rate securities (ARS) market did not have
Read more
June 1, 2006
Executive Summary With 400 basis points of Fed Funds rate increases over the past 24 months, investors are rightfully anxious about the impact of the Fed tightening policy. Our study finds that historically falling core CPI data tends to encourage the Fed to stop raising rates. Other key indicators, however,
Read more
March 1, 2005
Executive Summary The auction rate securities (ARS) market may be on the verge of a systemic meltdown after the recent PriceWaterhouseCoopers’ FAS 95 & 115 interpretations of ARS as long-term investments. Corporate cash managers may exit the ARS market. At a minimum, firms will likely scramble to comply with the
Read more
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
Read more
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
Read more
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
Read more
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
Read more
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
Read more
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
Read more