The balance sheet channel of monetary policy: first empirical evidence for the euro area corporate bond market

2004 ◽  
Vol 9 (3) ◽  
pp. 219-228 ◽  
Author(s):  
Gabe de Bondt
Keyword(s):  
Monetary Policy ◽  
Empirical Evidence ◽  
Euro Area ◽  
Balance Sheet ◽  
Bond Market ◽  
Corporate Bond ◽  
Corporate Bond Market ◽  
Balance Sheet Channel

scholarly journals Moral Hazard Effects of Corporate Bond Guarantee Purchases: Empirical Evidence from China

2018 ◽  
Vol 10 (5(J)) ◽  
pp. 100-115
Author(s):  
Xueying Zhang ◽  
Shansheng Gao ◽  
Jian Jiao
Keyword(s):  
Moral Hazard ◽  
Empirical Evidence ◽  
Adverse Selection ◽  
Credit Rating ◽  
Bond Market ◽  
Corporate Bond ◽  
Evidence Based ◽  
Corporate Bond Market ◽  
Selection Of ◽  
Better Than

This study examines corporate bond guarantees by developing a theoretical model that decomposes the overall impact of a guarantee into signalling and incentive effects and presenting empirical evidence based on data from China’s corporate bond market. Our empirical research yields considerable evidence for the effects we posit in the model and provides some important insights into the problems of adverse selection and moral hazard in China’s bond market. The empirical evidence shows that the bond issuer with lower credit rating are more willing to purchase a bond guarantee and guaranteed bonds have a higher issue spread yield than those non-guaranteed bonds, even though both have the same bond credit rating. Our findings suggest that moral hazard would be better than adverse selection to explain the self- selection of bond guarantees. Prior to bond issuance credit rating signal provides a mechanism to mitigate information inequality, while bond guarantees relieve information asymmetry afterwards. 

ISSUES OF FACTOR INVESTMENT IN THE CORPORATE BOND MARKET

2020 ◽  
Vol 2 (4) ◽  
pp. 81-89
Author(s):  
A. A. MISHIN ◽  
◽  
V. D. IGONIN ◽  
K. E. KUCHINSKY ◽  
◽  
...  
Keyword(s):  
Empirical Evidence ◽  
Bond Market ◽  
Corporate Bond ◽  
Added Value ◽  
Corporate Bond Market ◽  
Low Level ◽  
Multiple Assets ◽  
Risk Cost ◽  
Risk Free Rate ◽  
Free Rate

The article examines the effectiveness of portfolios with a low level of risk, cost, and factor momentum in the corporate bond market. This paper provides empirical evidence that portfolios of size, risk-free rate, cost, and momentum factors create economically significant and statistically significant Alphas in the corporate bond market. In addition, distribution by corporate bond factors provides added value, in addition to distribution by shares in the context of multiple assets.

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