IDEAS home Printed from https://ideas.repec.org/a/eee/corfin/v9y2003i5p535-554.html
   My bibliography  Save this article

Indexing a bond's call price: an analysis of make-whole call provisions

Author

Listed:
  • Mann, Steven V.
  • Powers, Eric A.

Abstract

No abstract is available for this item.

Suggested Citation

  • Mann, Steven V. & Powers, Eric A., 2003. "Indexing a bond's call price: an analysis of make-whole call provisions," Journal of Corporate Finance, Elsevier, vol. 9(5), pages 535-554, November.
    • Handle: RePEc:eee:corfin:v:9:y:2003:i:5:p:535-554
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0929-1199(02)00022-6
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robbins, Edward Henry & Schatzberg, John D, 1986. "Callable Bonds: A Risk-Reducing Signalling Mechanism," Journal of Finance, American Finance Association, vol. 41(4), pages 935-949, September.
    2. Roberts, Gordon S & Viscione, Jerry A, 1984. "The Impact of Seniority and Security Covenants on Bond Yields: A Note," Journal of Finance, American Finance Association, vol. 39(5), pages 1597-1602, December.
    3. Marr, M. Wayne & Ogden, Joseph P., 1989. "Market imperfections and the choices of maturity and call provisions in corporate debt," Journal of Business Research, Elsevier, vol. 19(1), pages 17-31, August.
    4. Kish, Richard J. & Livingston, Miles, 1992. "Determinants of the call option on corporate bonds," Journal of Banking & Finance, Elsevier, vol. 16(4), pages 687-703, August.
    5. Kahan, Marcel & Yermack, David, 1998. "Investment Opportunities and the Design of Debt Securities," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 14(1), pages 136-151, April.
    6. Richard J. Kish & Miles Livingston, 1993. "Estimating The Value Of Call Options On Corporate Bonds," Journal of Applied Corporate Finance, Morgan Stanley, vol. 6(3), pages 95-99, September.
    7. Narayanan, M. P. & Lim, Suk-Pil, 1989. "On the Call Provision in Corporate Zero-Coupon Bonds," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 24(1), pages 91-103, March.
    8. Fung, W K H & Rudd, Andrew, 1986. "Pricing New Corporate Bond Issues: An Analysis of Issue Cost and Seasoning Effects," Journal of Finance, American Finance Association, vol. 41(3), pages 633-643, July.
    9. Graham, John R. & Harvey, Campbell R., 2001. "The theory and practice of corporate finance: evidence from the field," Journal of Financial Economics, Elsevier, vol. 60(2-3), pages 187-243, May.
    10. Leland E. Crabbe & Jean Hewlege, 1994. "Alternative Tests of Agency Theories of Callable Corporate Bonds," Financial Management, Financial Management Association, vol. 23(4), Winter.
    11. Smith, Clifford Jr. & Warner, Jerold B., 1979. "On financial contracting : An analysis of bond covenants," Journal of Financial Economics, Elsevier, vol. 7(2), pages 117-161, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mann, Steven V. & Powers, Eric A., 2007. "Determinants of bond tender premiums and the percentage tendered," Journal of Banking & Finance, Elsevier, vol. 31(3), pages 547-566, March.
    2. Alderson, Michael J. & Lin, Fang & Stock, Duane R., 2017. "Does the choice between fixed price and make whole call provisions reflect differential agency costs?," Journal of Corporate Finance, Elsevier, vol. 46(C), pages 442-460.
    3. Brown, Scott & Powers, Eric, 2020. "The life cycle of make-whole call provisions," Journal of Corporate Finance, Elsevier, vol. 65(C).
    4. Afik, Zvika & Jacoby, Gady & Stangeland, David & Wu, Zhenyu, 2019. "The make-whole and Canada-call provisions: A case of cross-country spillover of financial innovation," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 61(C), pages 120-127.
    5. Carsten Bienz & Antoine Faure-Grimaud & Zsuzsanna Fluck, 2011. "Defeasance of Control Rights," FMG Discussion Papers dp679, Financial Markets Group.
    6. Batten, Jonathan A. & Jacoby, Gady & Liao, Rose C., 2014. "Corporate yield spreads and real interest rates," International Review of Financial Analysis, Elsevier, vol. 34(C), pages 89-100.
    7. Korkeamaki, Timo P., 2005. "Effects of law on corporate financing practices--international evidence from convertible bond issues," Journal of Corporate Finance, Elsevier, vol. 11(5), pages 809-831, October.
    8. Nayar, Nandkumar (Nandu) & Stock, Duane, 2008. "Make-whole call provisions: A case of "much ado about nothing?"," Journal of Corporate Finance, Elsevier, vol. 14(4), pages 387-404, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brown, Scott & Powers, Eric, 2020. "The life cycle of make-whole call provisions," Journal of Corporate Finance, Elsevier, vol. 65(C).
    2. Choi, Seungmook & Jameson, Mel & Jung, Mookwon, 2013. "The issuance of callable bonds under information asymmetry," Journal of Empirical Finance, Elsevier, vol. 21(C), pages 1-14.
    3. Maria do Rosario Correia & Scott C. Linn & Andrew Marshall, 2004. "An Empirical Investigation of Debt Contract Design: The Determinants of the Choice of Debt Terms in Eurobond Issues," FEP Working Papers 148, Universidade do Porto, Faculdade de Economia do Porto.
    4. John C. Banko & Lei Zhou, 2010. "Callable Bonds Revisited," Financial Management, Financial Management Association International, vol. 39(2), pages 613-641, June.
    5. Akdoğu, Evrim & Alp Paukowits, Aysun & Celikyurt, Ugur, 2020. "The relationship of G-Index and convertible debt issuance in the presence of restrictive covenants," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 373-390.
    6. Dutordoir, Marie & Pappas, Kostas & Xu, Alice Liang & Zeng, Cheng (Colin), 2023. "Covenants in convertible bonds: Boon or boilerplate?," Journal of Corporate Finance, Elsevier, vol. 80(C).
    7. Alderson, Michael J. & Lin, Fang & Stock, Duane R., 2017. "Does the choice between fixed price and make whole call provisions reflect differential agency costs?," Journal of Corporate Finance, Elsevier, vol. 46(C), pages 442-460.
    8. Eric Powers, 2021. "The Optimality of Call Provision Terms," Management Science, INFORMS, vol. 67(10), pages 6581-6601, October.
    9. Correia, Maria do Rosário, 2008. "The choice of maturity and additional covenants in debt contracts: A panel data approach," Research in International Business and Finance, Elsevier, vol. 22(3), pages 284-300, September.
    10. Mann, Steven V. & Powers, Eric A., 2007. "Determinants of bond tender premiums and the percentage tendered," Journal of Banking & Finance, Elsevier, vol. 31(3), pages 547-566, March.
    11. Levent Güntay & N. R. Prabhala & Haluk Unal, "undated". "Callable Bonds and Hedging," Center for Financial Institutions Working Papers 02-13, Wharton School Center for Financial Institutions, University of Pennsylvania.
    12. Tewari, Manish & Byrd, Anthony & Ramanlal, Pradipkumar, 2015. "Callable bonds, reinvestment risk, and credit rating improvements: Role of the call premium," Journal of Financial Economics, Elsevier, vol. 115(2), pages 349-360.
    13. Drobetz, Wolfgang & Pensa, Pascal & Wöhle, Claudia B., 2004. "Kapitalstrukturtheorie in Theorie und Praxis: Ergebnisse einer Fragebogenuntersuchung," Working papers 2004/09, Faculty of Business and Economics - University of Basel.
    14. Paolo M. Panteghini, 2012. "Corporate Debt, Hybrid Securities, and the Effective Tax Rate," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 14(1), pages 161-186, February.
    15. Joshua D. Rauh & Amir Sufi, 2010. "Capital Structure and Debt Structure," The Review of Financial Studies, Society for Financial Studies, vol. 23(12), pages 4242-4280, December.
    16. Marc Arnold & Dirk Hackbarth & Tatjana Xenia Puhan, 2018. "Financing Asset Sales and Business Cycles [Does industry-wide distress affect defaulted firms? Evidence from creditor recoveries]," Review of Finance, European Finance Association, vol. 22(1), pages 243-277.
    17. Daniels, Kenneth & Diro Ejara, Demissew & Vijayakumar, Jayaraman, 2009. "An empirical analysis of the determinants and pricing of corporate bond clawbacks," Journal of Corporate Finance, Elsevier, vol. 15(4), pages 431-446, September.
    18. Yaxuan Qi & John Wald, 2008. "State Laws and Debt Covenants," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 179-207, February.
    19. Hagelin, Niclas & Pramborg, Bengt, 2006. "Empirical evidence concerning incentives to hedge transaction and translation exposures," Journal of Multinational Financial Management, Elsevier, vol. 16(2), pages 142-159, April.
    20. Eric Powers & Sergey Tsyplakov, 2008. "What Is the Cost of Financial Flexibility? Theory and Evidence for Make‐Whole Call Provisions," Financial Management, Financial Management Association International, vol. 37(3), pages 485-512, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:corfin:v:9:y:2003:i:5:p:535-554. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jcorpfin .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.