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The Systematic Risk of Corporate Bonds

Published online by Cambridge University Press:  06 April 2009

Mark Weinstein
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Extract

This statement presents the usual perception of bond risk. It is striking in that it does not discuss what is, from a portfolio theoretic view, the risk of a bond––the covariance of its return with the returns of other assets. This is in contrast to the typical discussion of the riskiness of common stocks, where we find some discussion of systematic risk and the role it plays in determining equilibrium expected security returns.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 16 , Issue 3 , September 1981 , pp. 257 - 278
Copyright
Copyright © School of Business Administration, University of Washington 1981

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