Chapter-25The-Many-Different-Kinds-of-Debt(公司金融-英文版).ppt

Slides by Matthew Will Topics Covered Domestic Bonds and International Bonds The Bond Contract Security and Seniority Asset-Backed Securities Repayment Provisions Restrictive Covenants Private Placements and Project Finance Innovation in the Bond Market Bond Terminology Foreign bonds - Bonds that are sold to local investors in another countrys bond market Yankee bond- a bond sold publicly by a foreign company in the United States Sumari - a bond sold by a foreign firm in Japan Eurobond market - wind European and American multinationals were forced to tap into international markets for capital Bond Terminology Indenture or trust deed - the bond agreement between the borrower and a trust company Registered bond - a bond in which the Companys records show ownership and interest and principal are paid directly to each owner Bearer bonds - the bond holder must send in coupons to claim interest and must send a certificate to claim the final payment of principal Bond Terminology Accrued interest - the amount of accumulated interest since the last coupon payment Debentures - long-term unsecured issues on debt Mortgage bonds - long-term secured debt often containing a claim against a specific building or property Asset-backed securities - the sale of cash flows derived directly from a specific set of bundled assets Bond Terminology Sinking fund - a fund established to retired debt before maturity Callable bond - a bond that may be repurchased by a the firm before maturity at a specified call price Defeasance - a method of retiring corporate debt involving the creation of a trust funded with treasury bonds Straight Bond vs. Callable Bond Bond Terminology Restrictive covenants - Limitations set by bondholders on the actions of the Corporation Negative Pledge Clause - the processing of giving unsecured debentures equal protection and when assets are mortgaged Poison Put - a clause that obliges the borrower to repay the bond if a large quantity of stock is bought