Fixed-Rate Capital Securities

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Dictionary Says

Definition of 'Fixed-Rate Capital Securities'

A security issued by a corporation that has a $25 par value (although some are issued with a $1,000 par value) and offers investors a combination of the features of corporate bonds and preferred stock. These securities provide the benefits of attractive yields, fixed monthly, quarterly or semiannual income, investment time frames that are generally predictable (20-49 years, although some are perpetual), liquidity and investment-grade credit quality (in most cases).
Investopedia Says

Investopedia explains 'Fixed-Rate Capital Securities'

Unlike common and preferred stock dividends, the distributions made on fixed-rate capital securities are fully tax-deductible for the issuer, just like the interest payments on traditional debt instruments. Rating agencies have taken a positive view of this financing tool for the issuer, because it provides long-term capital and permits the deferral of payments should the issuer experience financial difficulties.  However, as with preferred stock, such deferrals can only occur if the parent company stops all other stock dividend payments.
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'Fixed-Rate Capital Securities'

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    ... 12.4 Security Market Line; 12.5 Capital Market Line (CML ... which the seller agrees
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    ... penalty from those who borrow fixed-rate debt ... find new lending opportunities to replace
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  • Floating-Rate Mutual Funds: Rewards And Risks

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    ... by a floating-rate loan's capital structure "seniority ... borrowing rates relative to
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    ... Real Estate; Statistics; Stocks; Taxes; Venture Capital. ... Code of Arbitration Procedure;
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  • How Interest Rates Affect The Housing Market

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    ... determines the market clearing prices investors will pay for mortgage-backed securities. ...
    Interest Rate Mortgages The interest rate on a fixed-rate mortgage is ...

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