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AN OVERVIEW OF CORPORATE SECURITIES INNOVATION

AN OVERVIEW OF CORPORATE SECURITIES INNOVATION Footnotes 1 . “ Financial Innovation: The Last Twenty Years and the Next ,” Journal of Financial and Quantitative Analysis ( December 1986 ), pp. 459 – 471 . 2 . Cited by Merton Miller as perhaps the most significant financial innovation in the past 25 years. See Miller, 1986, cited above. 3 . The year the security was first issued, and the number of issues and aggregate proceeds raised through year‐end 1991, were provided by Securities Data Company, Inc. 4 . This aspect of financial innovation is emphasized by Stephen Ross in “Institutional Markets, Financial Marketing, and Financial Innovation,” Journal of Finance (July 1989), pp. 541–556. 5 . The securities are often issued in a senior‐subordinated structure. The senior class of securities, which is sold to investors, has a prior claim to the cash flows from the underlying collateral pool. The issuer typically retains the subordinated interest in the collateral pool, although in many cases in recent years the subordinated class has also been sold to investors. The relative sizes of the senior and subordinated classes determine how the default risk is allocated between the two classes. 6 . See Frank J. Fabozzi (ed.), The Handbook of http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Applied Corporate Finance Wiley

AN OVERVIEW OF CORPORATE SECURITIES INNOVATION

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References (5)

Publisher
Wiley
Copyright
Copyright © 1992 Wiley Subscription Services, Inc., A Wiley Company
ISSN
1078-1196
eISSN
1745-6622
DOI
10.1111/j.1745-6622.1992.tb00215.x
Publisher site
See Article on Publisher Site

Abstract

Footnotes 1 . “ Financial Innovation: The Last Twenty Years and the Next ,” Journal of Financial and Quantitative Analysis ( December 1986 ), pp. 459 – 471 . 2 . Cited by Merton Miller as perhaps the most significant financial innovation in the past 25 years. See Miller, 1986, cited above. 3 . The year the security was first issued, and the number of issues and aggregate proceeds raised through year‐end 1991, were provided by Securities Data Company, Inc. 4 . This aspect of financial innovation is emphasized by Stephen Ross in “Institutional Markets, Financial Marketing, and Financial Innovation,” Journal of Finance (July 1989), pp. 541–556. 5 . The securities are often issued in a senior‐subordinated structure. The senior class of securities, which is sold to investors, has a prior claim to the cash flows from the underlying collateral pool. The issuer typically retains the subordinated interest in the collateral pool, although in many cases in recent years the subordinated class has also been sold to investors. The relative sizes of the senior and subordinated classes determine how the default risk is allocated between the two classes. 6 . See Frank J. Fabozzi (ed.), The Handbook of

Journal

Journal of Applied Corporate FinanceWiley

Published: Jan 1, 1992

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