Corporate Securities Innovation: An Update

Abstract

This paper reviews innovative corporate securities through year-end 2000. We describe 80 distinct new securities, which we categorize as 1) debt, 2) preferred stock, 3) convertible securities, and 4) common equity. For each security, we analyze probable sources of value added and provide a brief description of its distinctive features, the date of first issue, and an estimate of the number of issues and total new issue volume through year-end 2000. The sources of value added help explain the relative "staying power" of the many innovative securities.

JEL Classification: G10