Hostname: page-component-cd9895bd7-8ctnn Total loading time: 0 Render date: 2024-12-25T07:58:28.719Z Has data issue: false hasContentIssue false
  • English
  • Français

The Consideration of Coupon Levels, Taxes, Reinvestment Rates, and Maturity in the Investment Management of Financial Institutions

Published online by Cambridge University Press:  19 October 2009

Robert H. Cramer  and
Stephen L. Hawk
Get access Rights & Permissions [Opens in a new window]

Extract

The investment managers of financial institutions face a multiplicity of factors that influence the performance of fixed coupon securities in their investment portfolios. These factors can be classified under three headings:

1) Condition of the economy–changes in interest rate levels and spreads;

2) Nature of the financial institution–institution's tax rate, economic factors such as deposit variability and loan demand for banks, and premium inflow and benefit payments for insurance companies;

3) Characteristics of individual securities–(a) their attractiveness in terms of risk level and marketability; and (b) their contractual factors (coupon level and maturity) and tax status.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 10 , Issue 1 , March 1975 , pp. 67 - 84
Copyright
Copyright © School of Business Administration, University of Washington 1975

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

[1]Buse, A. “Expectations, Prices, Coupons and Yields.” Journal of Finance, Vol. 25, No. 4 (September 1970), pp. 809–818.CrossRefGoogle Scholar
[2]Conarard, Joseph W.The Behavior of Interest Rates. New York: National Bureau of Economic Research, 1966.Google Scholar
[3]Homer, Sidney, and Johannesen, Richard I.. The Price of Money. New Brunswick: Rutgers University Press, 1969.Google Scholar
[4]Homer, Sidney, and Liebowitz, Martin. Inside the Yield Book. Englewood Cliffs: Prentice-Hall, 1973.Google Scholar
[5]Malkiel, Burton G.The Term Structure of Interest Rates. Princeton: University Press, 1966.Google Scholar
[6]Malkiel, Burton G.The Term Structure of Interest Rates: Theory, Empirical Evidence, and Applications. New York: McCaleb-Seiler, 1970.Google Scholar