The essays in this thesis contribute to the previous three strands of the literature on the determinants of corporate bond yield spreads the first essay (bethke et.
All bonds are debt securities issued by organizations to raise capital for various purposes high-yield bonds are issued by organizations that do not qualify for.
Typically issue bonds with higher interest rates in order to entice investors and compensate them for this higher risk high-yield bond issuers may be companies .
That has been good news for the high-yield, or junk, bond market, where companies with poor credit ratings (below the investment-grade.
The two essays together suggest that bond etfs can be used in trading strategies existed in the corporate bond market (bessembinder & maxwell, 2008. High yield bonds – defined as corporate bonds rated below bbb− or baa3 by established credit rating agencies – can play an important role in many portfolios.
Free essay: advantages and disadvantages of stocks and bonds name essentially corporate bonds are debt that a company issues.