O'Leary, Christopher
April 2005
Investment Dealers' Digest;4/4/2005, Vol. 71 Issue 13, p24
Trade Publication
The article discusses the effect of rising inflation on the debt markets. Several upcoming bond issuers have begun rethinking their pricing strategies in the wake of events such as the recent interest-rate hike. An above-average inflation rate could quash the debt markets' growth, stifling new issuance and making secondary trading a wildly volatile and potentially costly experience. One sign that the bond markets have begun to take inflation seriously is that there is now a growing interest in all types of inflation-protected securities.


Related Articles

  • INTEREST RATES IN SA ALSO A WARNING.  // Finweek;12/25/2008, p23 

    The article reports on the trends in the interest rates of bonds in South Africa. It states that the R157 Treasury bond that matures in 2015 is trading at 7.67% in the capital market. It notes that investors feel a return of 7.67%/year, which will be more than the inflation rate over the period....

  • CORPORATE MOTIVES IN REPURCHASES OF DISCOUNTED BONDS. Johnson, Rodney; Klein, Richard // Financial Management (1972);Autumn74, Vol. 3 Issue 3, p44 

    This article analyzes corporate motives in repurchases of discounted bonds. The analysis demonstrates that repurchases in excess of current sinking fund requirements cannot be justified on a discounted cash flow basis unless the issuing firm is anticipating future reductions in interest rates....

  • The low-down on government bonds. BROWN, SIMON // Finweek;7/2/2015, p39 

    The article offers information on various aspects related to credit and bond markets. Topics discussed include various sectors that issued bonds such as the government, state-owned enterprises (SOEs), and corporations, the corresponding risks linked with bond payment, and interest rates...

  • Play it your way. Feben, Glenn // Super Review;Mar2004, Vol. 17 Issue 2, p24 

    The article reports that fixed interest rate is more volatile in the Australia. Interest rates continue to display cyclical behaviour consistent with trends in inflation and economic growth. Over recent years a series of one-off events have added to that volatility, generally resulting in...

  • FACTORS THAT IMPEDE VIABLE BOND MARKET DEVELOPMENT IN ONE HYPERINFLATIONARY ECONOMY. Sibanda, Dennis; Dubihlela, Job // Review of Business & Finance Studies;2013, Vol. 4 Issue 1, p107 

    This study offers an assessment of the viability of the fixed income securities market for one hyperinflationary economy since 1997 when its financial market took a volatile shape. The financial sector (banks) continues to grapple in trying to address inflationary pressures, while long term...

  • Arbitrage-Free Bond Pricing with Dynamic Macroeconomic Models. Gallmeyer, Michael F.; Hollifield, Burton; Palomino, Francisco J.; Zin, Stanley E. // Review (00149187);Jul/Aug2007, Vol. 89 Issue 4, p305 

    The authors examine the relationship between changes in short-term interest rates induced by monetary policy and the yields on long-maturity default-free bonds. The volatility of the long end of the term structure and its relationship with monetary policy are puzzling from the perspective of...

  • A new bond landscape.  // Corporate Adviser (Online Edition);10/14/2013, p3 

    The article presents views of Iain Buckle, co-manager of the Kames Sterling Corporate Bond Fund, on increased interest rates of bond holdings. He states that interest rates of the market has increased as compared to base rate of the Bank of England. He further mentions that increased rates...

  • DURATION AND CONVEXITY OF BONDS. Čerović, Slobodan; Pepić, Marina; Čerović, Stanislav; Čerović, Nevena // Singidunum Journal of Applied Sciences;2014, Vol. 11 Issue 1, p53 

    The wide impact that interest rate changes have on business performance, the fact that all market participants are, more or less, exposed to interest rate risk, as well as high volatility in interest rates in recent years, make interest rate risk one of the most significant risks. It is...

  • The Effects of Inflation and Income Taxes on Interest Rates: Some New Evidence. Young-Sup Yun // Journal of Financial & Quantitative Analysis;Dec84, Vol. 19 Issue 4, p425 

    This paper reexamines the empirical relation between inflation and interest rates concentrating on the tax effect proposed by Darby and Feldstein. Using the random walk intercept model, relative responses of taxable yields and tax-exempt yields to expected inflation are estimated. The results...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics