Abstract
The underlying credit risk in a bond is the same as in a loan. However the way in which a bond is issued, traded and held changes some details. This chapter is not concerned with the risks run in settling trades, which relate mainly to counterparties rather than to issuers of bonds. Rather it addresses the risk of loss because the issuer defaults, and the relationship between those risks and the ones attached to simple lending. ‘Bonds’ for this discussion include other debt securities such as commercial paper, but not equities.
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© 1995 T. H. Donaldson
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Donaldson, T.H. (1995). Credit in Securities. In: More Thinking about Credit. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-13763-3_7
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DOI: https://doi.org/10.1007/978-1-349-13763-3_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-13765-7
Online ISBN: 978-1-349-13763-3
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