A Commodity Linked Bond as an Optimal Debt Instrument in the Presence of Moral Hazard (Classic Reprint) - Couverture souple
Synopsis
How commodity linked debt can align incentives and raise firm value
This book examines how tying debt to commodity prices can solve moral hazard and improve financing for real assets. It explains, with a clear model, how a commodity linked bond can change management behavior and boost the value of a firm compared with traditional fixed‑rate debt.
Delving into a simplified mining example, the text shows how equity incentives interact with debt to shape abandonment decisions, cash flows, and the overall worth of the company. It also compares methods for valuing debt and equity when real assets, risk, and managerial choices are interdependent.
- See how to replicate a mine’s risky cash flows with futures and riskless bonds to find the right value under different strategies
- Learn why abandonment timing under moral hazard can shift the firm’s value and affect equity returns
- Compare commodity linked debt with fixed rate debt and understand how debt structure can change incentives
- Learn how to adjust traditional contingent claims techniques to reflect the impact of liabilities on managerial decisions
Ideal for readers of corporate finance, risk management, and financing real assets seeking a practical view of how debt design influences behavior and value.
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A Commodity Linked Bond as an Optimal Debt Instrument in the Presence of Moral
impression à la demandeVendeur : Forgotten Books, London, Royaume-Uni
Évaluation du vendeur 4 sur 5 étoiles
Paperback. Etat : New. Print on Demand. This book investigates the use of commodity-linked bonds, a hybrid debt instrument, as a means of providing optimal financing for a company's operations. The author constructs an example to demonstrate that in the presence of moral hazardâ"a situation in which one party to a contract has an incentive to take actions that are not in the best interest of the other partyâ"a firm may prefer to issue a bond linked to the price of a commodity, as opposed to a fixed-rate bond. The use of a commodity-linked bond can align the incentives of both parties, leading to more efficient investment and operating decisions and higher overall value for the firm. The author also shows that traditional contingent claim valuation techniques, which assume no impact on management decisions from the parameters of the liabilities sold against the firm, can lead to incorrect valuations of both the real assets and the financial liabilities written against those assets. The book provides a valuable framework for understanding the complex interactions between financial contracts and real asset management in the presence of moral hazard and highlights the potential benefits of using commodity-linked bonds as a financing instrument. This book is a reproduction of an important historical work, digitally reconstructed using state-of-the-art technology to preserve the original format. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in the book. print-on-demand item. N° de réf. du vendeur 9781332255641_0
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A Commodity Linked Bond as an Optimal Debt Instrument in the Presence of Moral Hazard Classic Reprint
Vendeur : PBShop.store US, Wood Dale, IL, Etats-Unis
Évaluation du vendeur 5 sur 5 étoiles
PAP. Etat : New. New Book. Shipped from UK. Established seller since 2000. N° de réf. du vendeur LW-9781332255641
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EUR 21,48
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Expédition nationale : Etats-Unis
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A Commodity Linked Bond as an Optimal Debt Instrument in the Presence of Moral Hazard Classic Reprint
Vendeur : PBShop.store UK, Fairford, GLOS, Royaume-Uni
Évaluation du vendeur 4 sur 5 étoiles
PAP. Etat : New. New Book. Shipped from UK. Established seller since 2000. N° de réf. du vendeur LW-9781332255641
Acheter neuf
EUR 21,18
Expédition à EUR 3,80
Expédition depuis Royaume-Uni vers Etats-Unis
Expédition depuis Royaume-Uni vers Etats-Unis
Quantité disponible : 15 disponible(s)