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A RESEARCH ON HIGH YIELD BONDS WITHIN THE NORWEGIAN OIL INDUSTRI

Njord, Christian (2009) MIO920
Production Management
Abstract
Problem definition: When investing in bonds there are some fundamental things the investor
needs to be aware of, such as how the bond is being priced, how the structure of the
company's capital structure is affecting the risk of holding the bond and the dynamics that
could change the price of the bond over time.
When a company tries to get more finance through credit capital markets, the capital structure
of the company’s debt, the offered coupon payment and the price of the credit will be
structured all related to the markets appetite of risk. The focus will be on high yield debt.
When a company tries to get more finance through credit capital markets, the capital structure
of the company’s debt, the offered coupon payment and the... (More)
Problem definition: When investing in bonds there are some fundamental things the investor
needs to be aware of, such as how the bond is being priced, how the structure of the
company's capital structure is affecting the risk of holding the bond and the dynamics that
could change the price of the bond over time.
When a company tries to get more finance through credit capital markets, the capital structure
of the company’s debt, the offered coupon payment and the price of the credit will be
structured all related to the markets appetite of risk. The focus will be on high yield debt.
When a company tries to get more finance through credit capital markets, the capital structure
of the company’s debt, the offered coupon payment and the price of the credit will be
structured all related to the markets appetite of risk. The focus on high yield debt financing,
how some companies use it in order to raise more money and what the measurements are
important to be analyzed for the investor before buying these sold instruments.
The high yield bonds that usually exist among newly started companies or companies that have
a higher risk of defaulting on debt or if the investor is exposed to a riskier part of the capital
structure. The high yield bonds pays a high coupon rate and there for offers a high yield which
can be attractive to investors, such as private investors and most often investors from financial
institutions.
The second part there will be a case study on a company with outstanding high yield debt.
There are several of new developed companies in Norway concentrating on building offshore
drilling units that are financed with high yield bonds. This market has provided a handful
amount of high yield bonds that this paper will take a closer look at on one of these companies.
Purpose: The purpose of this thesis is to develop a model to simulate the cash flow of a
company and with this model value the credit risks and financing for the company. The purpose
is also to describe the fundamentals of bond pricing. A full credit analysis with applied theory
will be done on the company that is a Norwegian company called PetroMena that builds oil
drilling units. (Less)
Please use this url to cite or link to this publication:
author
Njord, Christian
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
High‐yield bond, Yield, Bond Pricing, Leverage, Net Debt and Coverage ratio
other publication id
09/5340
language
English
id
1978439
date added to LUP
2011-06-16 16:14:00
date last changed
2011-06-20 12:28:02
@misc{1978439,
  abstract     = {Problem definition: When investing in bonds there are some fundamental things the investor
needs to be aware of, such as how the bond is being priced, how the structure of the
company's capital structure is affecting the risk of holding the bond and the dynamics that
could change the price of the bond over time.
When a company tries to get more finance through credit capital markets, the capital structure
of the company’s debt, the offered coupon payment and the price of the credit will be
structured all related to the markets appetite of risk. The focus will be on high yield debt.
When a company tries to get more finance through credit capital markets, the capital structure
of the company’s debt, the offered coupon payment and the price of the credit will be
structured all related to the markets appetite of risk. The focus on high yield debt financing,
how some companies use it in order to raise more money and what the measurements are
important to be analyzed for the investor before buying these sold instruments.
The high yield bonds that usually exist among newly started companies or companies that have
a higher risk of defaulting on debt or if the investor is exposed to a riskier part of the capital
structure. The high yield bonds pays a high coupon rate and there for offers a high yield which
can be attractive to investors, such as private investors and most often investors from financial
institutions.
The second part there will be a case study on a company with outstanding high yield debt.
There are several of new developed companies in Norway concentrating on building offshore
drilling units that are financed with high yield bonds. This market has provided a handful
amount of high yield bonds that this paper will take a closer look at on one of these companies.
Purpose: The purpose of this thesis is to develop a model to simulate the cash flow of a
company and with this model value the credit risks and financing for the company. The purpose
is also to describe the fundamentals of bond pricing. A full credit analysis with applied theory
will be done on the company that is a Norwegian company called PetroMena that builds oil
drilling units.},
  author       = {Njord, Christian},
  keyword      = {High‐yield bond,Yield,Bond Pricing,Leverage,Net Debt and Coverage ratio},
  language     = {eng},
  note         = {Student Paper},
  title        = {A RESEARCH ON HIGH YIELD BONDS WITHIN THE NORWEGIAN OIL INDUSTRI},
  year         = {2009},
}