Decomposing Municipal Bond Default and Liquidity Risk: Evidence from Japan's Tax Treatment

2017 ◽  
Author(s):  
Takahiro Hattori
Keyword(s):  
Liquidity Risk ◽  
Municipal Bond

scholarly journals The Impact of Government Intervention on Municipal Bond Liquidity Premium: Evidence from China

2019 ◽  
Vol 6 (3) ◽  
pp. 79 ◽  
Author(s):  
Xiao Wan Jiang
Keyword(s):  
Least Squares Method ◽  
Government Intervention ◽  
Liquidity Risk ◽  
Bond Market ◽  
Municipal Bonds ◽  
Yield Spread ◽  
Municipal Bond ◽  
Liquidity Premium ◽  
Short And Long Term ◽  
The Impact

Government intervention is an important factor which restricts the development of municipal bond market in China. Based on the revenue bond innovation pilot policy implemented by the Ministry of Finance in 2017, this paper uses municipal bond trading data of Chinese inter-bank bond market from May 2017 to June 2018 and the two-stage least squares method to study the impact of government intervention on the liquidity premium of municipal bonds. The results of the empirical research show: (1) The liquidity risk of municipal bonds is a factor that affects the yield spread, and the marginal impact of liquidity risk on the yield spread is about 4.6 basis points. (2) After the implementation of the revenue bond innovation pilot policy, the reduction of local government intervention significantly reduced the liquidity premium level of municipal bonds. Based on the above conclusions, we propose policy recommendations for the development of the municipal bond market in the short and long term.

Revitalizing Municipal Bond Market : The Case of Total Bond Limits Policy

2019 ◽  
Vol 17 (1) ◽  
pp. 175-195 ◽  
Author(s):  
Il Hwan Chung ◽  
◽  
Eung Gil Kim
Keyword(s):  
Bond Market ◽  
Municipal Bond

Investing with Futures in the Municipal Bond Market—Part I

1988 ◽  
Vol 1988 (1) ◽  
pp. 42-46, 62-64
Author(s):  
William A. Trader
Keyword(s):  
Bond Market ◽  
Municipal Bond
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