Syndicate Structure, Primary Allocations, and Secondary Market Outcomes in Corporate Bond Offerings

2020 ◽  
Author(s):  
Hendrik (Hank) Bessembinder ◽  
Stacey E. Jacobsen ◽  
William F. Maxwell ◽  
Kumar Venkataraman
Keyword(s):  
Secondary Market ◽  
Corporate Bond ◽  
Market Outcomes ◽  
Syndicate Structure

scholarly journals Secondary Market Liquidity and Primary Market Pricing of Corporate Bonds

2019 ◽  
Vol 12 (2) ◽  
pp. 86 ◽  
Author(s):  
Michael A. Goldstein ◽  
Edith S. Hotchkiss ◽  
David J. Pedersen
Keyword(s):  
Asset Prices ◽  
Cost Of Capital ◽  
Secondary Market ◽  
Market Liquidity ◽  
Corporate Bond ◽  
Yield Spread ◽  
Market Pricing ◽  
Yield Spreads ◽  
Ex Ante ◽  
The Impact

This paper studies the link between secondary market liquidity for a corporate bond and the bond’s yield spread at issuance. Using ex-ante measures of expected liquidity at the time of issuance, based on the characteristics of the underwriting syndicate, we find an economically large impact of liquidity on yield spreads. We estimate that a 10% increase in expected liquidity implies a decrease in the yield spread at issuance of between 8% and 14%. Our results suggest that liquidity has an important effect on firms’ cost of capital, and they contribute to the literature which examines the impact of liquidity on asset prices.

FINANSIRANjE PREDUZEĆA EMISIJOM KORPORATIVNIH OBVEZNICA

2021 ◽  
Author(s):  
Jasmina Labudović Stanković ◽  
Keyword(s):  
Financial Market ◽  
Corporate Bonds ◽  
Developed Countries ◽  
Bond Market ◽  
Secondary Market ◽  
Bank Loans ◽  
Corporate Bond ◽  
Corporate Sector ◽  
Corporate Bond Market ◽  
Bond Issues

The corporate bond market contributes to the development of the financial market, its infrastructure, and affects economic growth. In developed countries, corporate bond issuance is a very common way of borrowing by the corporate sector. In developing countries, this method of borrowing is used "shyly" because companies most often turn to banks for help. In addition, the inflow of FDI in these countries contributes to meeting the financial needs of the corporate sector, thus reducing the need for bond issues. The paper compares borrowing by issuing corporate bonds and bank loans, explains the forms of issue of these securities, rating bonds, the secondary market of corporate bonds and briefly presents the picture of the corporate bonds market of Republic of Serbia.

scholarly journals Does ESG Disclosure Affect Corporate-Bond Credit Spreads? Evidence from China

2021 ◽  
Vol 13 (15) ◽  
pp. 8500
Author(s):  
Yuexiang Yang ◽  
Zhihui Du ◽  
Zhen Zhang ◽  
Guanqun Tong ◽  
Rongxi Zhou
Keyword(s):  
Energy Consumption ◽  
Evaluation System ◽  
Investment Decision ◽  
State Ownership ◽  
Secondary Market ◽  
Corporate Bond ◽  
Credit Spreads ◽  
Investment Decision Making ◽  
High Pollution ◽  
The Impact

With the exponential development of an ecological and sustainable economy and society, the concept and practice of environmental, social, and governance (ESG) investments are being popularized in the capital market of China. ESG disclosure is an important supplement to financial disclosure and plays an increasingly significant role in asset pricing. In this paper, we selected corporate bond data in China’s secondary bond market from 2015 to 2020, and introduced the Nelson–Siegel model to study the influence of ESG disclosure on corporate bond credit spreads in the secondary market. This model passed robustness tests when we used alternative data fitted by the modified Nelson–Siegel model. Results show that ESG disclosure significantly reduces credit spreads on corporate bonds in the secondary market. State ownership and industry play significant roles in moderating the impact of ESG disclosure on corporate bond credit spreads. Specifically, the ESG disclosure of non-state-owned companies and companies in non-high-pollution and -energy-consumption industries has a greater impact on reducing corporate bond credit spreads. Therefore, we urge regulatory departments to establish a sound ESG disclosure evaluation system, and the issue companies to improve the quality of their ESG disclosure, especially non-state-owned companies, and those in non-high-pollution and -energy-consumption industries. Corporate bond investors would benefit from integrating ESG information into their investment decision-making process.

Strategi Pengelolaan Risiko dan Peningkatan Kualitas Pengelolaan Kas Negara

2017 ◽  
Vol 2 (2) ◽  
pp. 43-54
Author(s):  
Agung Mulyono
Keyword(s):  
Interest Rates ◽  
Financial Risk ◽  
Vector Autoregression ◽  
Secondary Market ◽  
Key Factors ◽  
Bond Price ◽  
Hedging Strategy ◽  
Foreign Loan ◽  
Term Operation ◽  
Loan Interest Rates

Cash management is  one of treasury’s main functions in which has a potential financial risk. A potential financial risk emerges when State Treasurer manages cash surplus and or/ shortages in order to maintain optimum liquidity. By applying Vector Autoregression (VAR) system on empirical data provided by Bank Indonesia and the Ministry of Finance of Indonesia, we found that currency value  flunctuation is a significant factor for repayment value of foreign loan. Interest rates and amount of government’s bond held by foreign investors are also variables impacted on government’s bond price movement in secondary market. Currency value  flunctuation and price of government’s bond in secondary market are the key factors that have to be considered by State Treasurer (BUN) in managing state’s money. Hedging strategy by using derivatif product is possible to be utilized by State Treasurer (BUN) due to it’s flexibility for short-term operation.   Abstrak Pengelolaan kas negara merupakan salah satu fungsi pokok perbendaharaan yang dalam proses pelaksanaannya menyimpan potensi berbagai risiko keuangan. Risiko keuangan, khususnya dalam investasi berpotensi muncul ketika Bendahara Umum Negara (BUN) melakukan kegiatan pengelolaan kelebihan dan/ kekurangan kas dalam rangka menjamin ketersediaan dan optimalisasi kas. Dengan menggunakan analisis Vector Autoregression (VAR) atas data empiris yang diperoleh dari Bank Indonesia dan Kementerian Keuangan Indonesia, penulis menemukan bahwa fluktuasi nilai tukar mata uang merupakan faktor yang signifikan terhadap besaran pembayaran utang luar negeri pemerintah. Tingkat suku bunga acuan dan pergerakan besaran kepemilikan SUN oleh investor asing juga merupakan variabel yang berpengaruh terhadap pergerakan harga SUN di pasar sekunder. Fluktuasi nilai tukar mata uang dan pergerakan harga SUN di pasar sekunder menjadi faktor penting dalam pelaksanaan investasi yang dilakukan BUN dalam rangka pengelolaan kelebihan dan/ kekurangan kas. Berdasarkan hasil tersebut, strategi pengelolaan risiko atau hedging dengan menggunakan produk-produk derivatif dalam pengelolaan kelebihan dan/ kekurangan kas jangka pendek – menengah sangat dimungkinkan karena sifat instrumen derivatif yang fleksibel.

Comparing Possible Proxies of Corporate Bond Liquidity

CFA Digest ◽  
2005 ◽  
Vol 35 (4) ◽  
pp. 29-30
Author(s):  
Joseph D.V. Vu
Keyword(s):  
Corporate Bond ◽  
Bond Liquidity

Exploring gender digital divide and its effect on women's labour market outcomes in South Africa

2020 ◽  
Vol 9 (4) ◽  
pp. 85-108
Author(s):  
Kehinde Oluwaseun Omotoso ◽  
Jimi Adesina ◽  
Ololade G. Adewole
Keyword(s):  
South Africa ◽  
Labour Market ◽  
Married Women ◽  
Internet Usage ◽  
Market Participation ◽  
Market Outcomes ◽  
Broadband Internet ◽  
Variable Approach ◽  
Labour Market Participation ◽  
Labour Market Outcomes

Technology plays a significant role in bridging gender gap in labour market outcomes. This paper investigates gender differential in broadband Internet usage and its effects on women‘s labour market participation. Employing an instrumental variable approach, findings suggest that exogenously determined high-speed broadband internet usage leads to increases of about 14.1 and 10.6 percentage points in labour market participation for single women and married women with some level of education, respectively. Moreover, further analyses suggest that married women are generally less likely to use the Internet to search for job opportunities and this could partly explains their low labour market participation rate. The findings suggest that more policy effort is required to bridge gender differentials in digital technologies and employment opportunities in South Africa.

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