Current sources of bond data for valuing promissory notes

BVWireIssue #105-5
June 29, 2011

G. Matt Barberich (Marks Nelson Vohland Campbell Radetic) is valuing a promissory note/receivable, and has asked analysts on LinkedIn’s BV Professionals group for the “best resource available" to obtain current yields of notes of varying degrees of default risk (e.g., S&P ratings of Aaa, Baa, C, D, etc.), other than Moody's Aaa and Baa corporate ratings available at the Federal Reserve.

Don Drysdale (Drysdale Valuation) suggests Bonds Online’s Reuters Corporate Bond Spread Tables. “This will give you bond spreads based on debt ratings and for different maturities,” he says, and current data are relatively inexpensive ($35), compared to pricier historical data ($200).

Craig Cook (Grant Thornton) recommends Capital IQ because its search interface provides a range of bond issues, “which could come close to fitting your subject note parameters.”  Moody's also “publishes a simplified version of their credit rating model for various industries,” he adds, ”which can assist you to identify the appropriate rating of your company.”

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