Home About us Contact
|
Home About us Contact | ||
|
|
||
Commercial Paper (commercial + paper)
Selected AbstractsRe Metcalfe: A matter of fraud, fairness, and reasonableness.INTERNATIONAL INSOLVENCY REVIEW, Issue 3 2008The restructuring of the third-party asset-backed commercial paper market in Canada The recent market freeze in third-party asset-backed commercial paper in Canada has given rise to a restructuring proceeding of unprecedented size and complexity in Canada. It has led the Courts to refine and perhaps define the interpretative principles underpinning the determination of the scope of under-inclusive commercial legislation. This paper is a commentary on this unusual proceeding and the judicial analysis employed in the proceeding. Copyright © 2008 John Wiley & Sons, Ltd. [source] Altering Investment Decisions to Manage Financial Reporting Outcomes: Asset-Backed Commercial Paper Conduits and FIN 46JOURNAL OF ACCOUNTING RESEARCH, Issue 5 2008DANIEL A. BENS ABSTRACT We evaluate the manner in which sponsors of highly leveraged asset-backed commercial paper (ABCP) conduits responded to Financial Accounting Standards Board Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities an Interpretation of ARB No. 51, and its Canadian counterpart Accounting Standards Board of Accounting Guideline 15 (AcG-15), Consolidation of Variable Interest Entities. By matching commercial paper investors with corporations seeking liquidity, ABCP sponsors facilitate a significant amount of short-term, securitized financing in the United States. FIN 46 and AcG-15 require sponsors to consolidate their ABCP conduits with their financial statements. We demonstrate that the volume of ABCP began to decline when FIN 46 was first proposed, and that this decline is primarily attributable to a reduction in North American banks' sponsorship of ABCP. We also demonstrate that North American banks entered into costly restructuring arrangements to avoid having to consolidate their conduits per the new accounting standards. Our results suggest that, in certain settings, accounting standards appear to have real effects on investment activity and product-market competition. [source] Are Banks Still Special?JOURNAL OF APPLIED CORPORATE FINANCE, Issue 1 2000New Evidence on Their Role in the Corporate Capital-Raising Process Bankers appear to play a special role in providing commitment-based financing to corporations. This type of lending is important not only for small firms that lack access to public debt markets but for large and medium-size companies as well. For such companies, commitment-based financing provides access to debt capital that becomes valuable when the firm has an immediate need for funding but interest rates in public debt markets are prohibitively high, or the firm is undervalued by the market. A good example of this was provided by the Asian crisis in the last quarter of 1998, when $10 billion of commercial paper was retired and $20 billion of net new commercial loans were booked. The authors also suggest that the fact that commitment-based financing is used by larger companies when they believe themselves to be undervalued in the market is probably the best explanation of why announcements of these types of loans elicit a positive stock price reaction. [source] Forecasting commercial paper ratesJOURNAL OF FORECASTING, Issue 1 2004Conway Lackman Abstract A model previously developed by Lackman (C. L. Lackman, Forecasting commercial paper rates. Journal of Business Finance and Accounting15 (1988) 499,524) for the period 1960 to 1985 is updated to include the 1990s and incorporate statistical techniques relating to tests for stationary conditions not available in 1988. As in the previous model, the demand for commercial paper by each institution (Households (HH), Life Insurance Companies (LIC), Non-Financial Corporations (CRP) and Finance Corporations (FC)) and the total demand is simulated. Simulations of the commercial paper rate are also generated,using just the demand equations (total supply exogenous) and then employing the entire model (supply endogenous) to determine the rate. Simulation periods are from 1960:2 to 2001:4 for all demand simulations. The dynamic simulation of the total demand for commercial paper performs well. The resulting root mean square error, 3.485, compares favourably with the Federal Reserve Boston,Massachusetts Institute of Technology (FRB,MIT) estimate of the commercial paper rate (deLeeuw and Granlich, 1968). Copyright © 2004 John Wiley & Sons, Ltd. [source] | ||||||||||