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On the Seasoning Process of New Bonds: Some Are More Seasoned than Others

Published online by Cambridge University Press:  06 April 2009

Eric H. Sorensen
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Extract

In recent years, there have been a number of studies investigating the yield spread phenomena between new and seasoned bonds ([1], [2], [3], [4], [8], [10], [13]). This literature focuses upon two aspects of the equilibrium pricing of new versus seasoned bonds: (l) analysis of the microeconomic determinants of new issue/seasoned issue yield spreads such as specific differences in coupon rates, call features, maturity features, and the like; and (2) analysis of macroeconomic determinants of yield spreads such as economic growth, interest rate cycles, changing marginal tax rates, and the like.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 17 , Issue 2 , June 1982 , pp. 195 - 208
Copyright
Copyright © School of Business Administration, University of Washington 1982

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References

REFERENCES

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