Issues Concerning Investing in High-yield Bonds by FSLIC Insured Depository Institutions: Hearings Before the Subcommittee on General Oversight and Investigations of the Committee on Banking, Finance, and Urban Affairs, House of Representatives, One Hundred First Congress, First Session, March 2, 1989
United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on General Oversight and Investigations
U.S. Government Printing Office, 1989 - Junk bonds - 106 pages
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According Accounting acquisitions activity addition allowances amount assets average Bank billion bulletin calculated capital Chairman HUBBARD changes Committee companies compared concern corporate debt default determine direct directors discussed economic effect established examiners factors failure Federal Home Loan federally insured thrifts FHLBB financing FOGEL funds going growth guidelines hearing held high yield bonds higher hold Home Loan Bank increased industry insolvent interest investment grade bonds investment in high investors issued issuer junk bonds lending less leveraged limitations look loss loss reserve March ment mergers officials percent period problems purchasing reasons recession regulations relatively represented requirements Reserve result returns risk risks and returns Savings and Loan securities showed sources specific standards statement subcommittee suggested Table takeovers Thank thrift institutions thrift investments Treasury types yield bond investments yield bond market yield bond portfolio
Page 37 - In coordination and consultation with the Securities and Exchange Commission, the Federal Home Loan Bank Board, the Comptroller of the Currency, the Board of Governors of the Federal Reserve System...
Page 96 - Recipients of this draft must not show or release its contents for purposes other than official review and comment under any circumstances. At all times it must be safeguarded to prevent publication or other improper disclosure of the information contained therein.
Page 23 - Includes the Office of the Comptroller of the Currency; the Federal Deposit Insurance Corporation; the Federal Home Loan Bank Board; the...
Page 37 - The Honorable Henry B. Gonzalez Chairman, Committee on Banking, Finance and Urban Affairs House of Representatives This report discusses issues associated with reforming the deposit insurance system.
Page 45 - GAO PRODUCTS Abbreviations FRS Federal Reserve System FHLBB Federal Home Loan Bank Board FSLIC Federal Savings and Loan Insurance Corporation GAO General Accounting Office LBO Leveraged Buyout OCC Office of the Comptroller of the Currency ORA Office of Regulatory Activities SEC Securities and Exchange Commission S&P 500 Standard and Poor's index of 500 widely held common stocks WEFA Wharton Econometric Forecasting Associates...
Page 3 - SEC. 22. (a) In order to enable the board to carry out the provisions of this Act, the Treasury Department, the Comptroller of the Currency, the Federal Reserve Board, and...
Page 89 - ... worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Page 98 - So far, high yield bonds have been attractive investments for thrifts compared to many alternative investments, and high yield bond investments have not contributed to the thrift industry's current problems. However, the higher yields on these bonds carry higher risks compared to traditional thrift assets such as residential Mortgage loans. In addition, the high yield bond market, in its present size and form, has not been tested by a recession.
Page 89 - Assets classified Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a welldefined weakness or weaknesses. They are characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected.
Page 98 - ... contributed to the thrift industry's current problems. However, the higher yields on these bonds carry higher risks compared to traditional thrift assets such as residential mortgage loans. In addition, the high yield bond market, in its present size and form, has not been tested by a recession. A severe economic downturn might increase bond defaults, especially for those companies issuing bonds as part of leveraged buyouts. For these reasons, thrifts need to have the expertise to invest in high...