Notes there has been a growing awareness of the need to introducehybrid financial instruments to the property financing market. Examinesthe characteristics of deep discount, zero…
Abstract
Notes there has been a growing awareness of the need to introduce hybrid financial instruments to the property financing market. Examines the characteristics of deep discount, zero coupon and stepped bonds. Discusses cash flow, accounting and taxation. Concludes that these techniques offer new dimensions to the changing requirements of property finance.
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Notes there has been a growing awareness of the need to introducehybrid financial instruments to the property financing market includingdeep discount, zero coupon and stepped…
Abstract
Notes there has been a growing awareness of the need to introduce hybrid financial instruments to the property financing market including deep discount, zero coupon and stepped bonds (DDBs). Considers what terms are typically available and where and how they may be applied. Concludes that the rewards which flow from the use of DDBs can be significant in terms of running yield and redemption value and, if they are traded in the Euro or domestic market, may be considered liquid.