Corporate Bond Returns And The Financial Crisis

Download Corporate Bond Returns And The Financial Crisis full books in PDF, epub, and Kindle. Read online Corporate Bond Returns And The Financial Crisis ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!

Corporate Bond Returns and the Financial Crisis

Author : David Aboody
Publisher :
ISBN 13 :
Total Pages : 37 pages
Book Rating : 4.:/5 (13 download)

DOWNLOAD NOW!

Book Synopsis Corporate Bond Returns and the Financial Crisis by : David Aboody

Download or read book Corporate Bond Returns and the Financial Crisis written by David Aboody and published by . This book was released on 2014 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: We assess the impact of the recent financial crisis and government interventions to ameliorate the ensuing recession on corporate bond returns through the lens of bond market reactions to news conveyed by changes in aggregate earnings as a proxy for changes in expected future cash flows and changes in T-Bill rates as a proxy for changes in expected future discount rates. The association of T-Bill rate changes with bond returns is negative as expected prior to the financial crisis, but shifts to positive with the onset of the crisis partly explainable by government bailouts of large banks, and flight to safety for bonds issued by other institutions. The association of earnings changes with bond returns is positive as expected prior to the crisis, but, while remaining positive for investment grade, becomes insignificant for speculative grade bonds. The absence of an effect for investment grade bonds we attribute timely loss recognition in earnings by financial institutions subject to immediate loss recognition under mark-to-market accounting and profits during recovery as government relief took effect. The latter shift to insignificance we attribute to earnings changes reflecting diminished earnings persistence and delayed recognition of losses by non-financial institutions. Generally speaking, our results suggest that government intervention during the crisis period had significant effects on corporate bond markets. We also observe that earnings changes as a source of cash flow news is sensitive to the accounting policies that come to bear. More broadly, further results suggest that relations between bond returns and news conveyed by earnings and T-Bill rate changes are sensitive to the business cycle.

Regulation after the Financial Crisis. Impact on Corporate Bond Market Liquidity

Author : Michael Kreienbaum
Publisher : GRIN Verlag
ISBN 13 : 3346489663
Total Pages : 41 pages
Book Rating : 4.3/5 (464 download)

DOWNLOAD NOW!

Book Synopsis Regulation after the Financial Crisis. Impact on Corporate Bond Market Liquidity by : Michael Kreienbaum

Download or read book Regulation after the Financial Crisis. Impact on Corporate Bond Market Liquidity written by Michael Kreienbaum and published by GRIN Verlag. This book was released on 2021-09-15 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2020 in the subject Economics - Finance, grade: 1,0, University of Mannheim, language: English, abstract: This paper aims to answer the question of whether post-crisis regulatory interventions caused a decline in liquidity. To serve this purpose, it investigates how individual provisions affect the market making business and how the corporate bond market changed in response to regulations. The paper approaches the issue by structuring theoretical and empirical evidence of corporate bond liquidity. It develops regulations impact levels from particular to aggregate, facilitating a perspicacious analysis. Important to note, the study attempts to assess neither welfare effects nor the desirability of regulations. After the financial crisis, regulators intervened to enhance the resilience of the banking system. Their provisions range from capital and liquidity standards to the prohibition of single activities considered too risky. However, concerns arise that post-crisis regulations harm liquidity by imposing constraints on its providers. When liquidity is low, investors that want to trade large volumes must wait for counterparties or accept to trade below market prices. Therefore, in certain financial markets like that for corporate bonds, intermediaries emerged to facilitate market functioning. They enable investors to trade immediately, reconciling imbalances in supply and demand. Illiquidity is costly for the economy as investors require compensation for holding riskier bonds. Amihud and Mendelson provide cross-sectional and time-series evidence of the resulting illiquidity discount. Hence, if regulations reduced liquidity, they would cause a depreciation of prices. Also, lower liquidity implies higher cost of debt and transaction costs, as well as a less efficient resource allocation. The regulatory impact on liquidity is, therefore, highly important for policymakers and investors.

Risks and Yields of High-Yield Corporate Bonds

Author :
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (929 download)

DOWNLOAD NOW!

Book Synopsis Risks and Yields of High-Yield Corporate Bonds by :

Download or read book Risks and Yields of High-Yield Corporate Bonds written by and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial crisis and the subsequent years of quantitative easing in the United States caused interest rates to drop sharply. In search of higher yields the high-yield corporate bond market was faced with high demand. This thesis aimed to analyze the behavior and risk adequacy of US high-yield bond yields during the time of quantitative easing after the financial crisis. The credit spread was the main variable used for this purpose. Furthermore, analyses were conducted to compare the credit spreads after the financial crisis with the ones before. In addition to high yield bonds, investment grade bonds were analyzed. The analyses showed that the credit spreads did not change significantly in the time period after the financial crisis between 2010 and 2014 during the time of quantitative easing. However, the study reveals that credit spreads in the high-yield as well as in the investment grade bond markets were significantly higher after the financial crisis (2010 - 2014) compared to before (2002 - 2006).

The Financial Crisis Inquiry Report

Author : Financial Crisis Inquiry Commission
Publisher : Cosimo, Inc.
ISBN 13 : 1616405414
Total Pages : 692 pages
Book Rating : 4.6/5 (164 download)

DOWNLOAD NOW!

Book Synopsis The Financial Crisis Inquiry Report by : Financial Crisis Inquiry Commission

Download or read book The Financial Crisis Inquiry Report written by Financial Crisis Inquiry Commission and published by Cosimo, Inc.. This book was released on 2011-05-01 with total page 692 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.

Transmission Channels of Financial Shocks to Stock, Bond, and Asset-Backed Markets

Author : Massimo Guidolin
Publisher : Springer
ISBN 13 : 1137561394
Total Pages : 215 pages
Book Rating : 4.1/5 (375 download)

DOWNLOAD NOW!

Book Synopsis Transmission Channels of Financial Shocks to Stock, Bond, and Asset-Backed Markets by : Massimo Guidolin

Download or read book Transmission Channels of Financial Shocks to Stock, Bond, and Asset-Backed Markets written by Massimo Guidolin and published by Springer. This book was released on 2015-11-12 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: Researchers, policymakers and commentators have long debated the patterns through which adverse shocks in a few markets may quickly spread to a range of apparently disconnected financial markets causing widespread losses and turmoil. This book uses modern linear and non-linear econometric methods to characterize how shocks to the yield of risky fixed income securities, such as sub-prime asset-backed or low-credit rating sovereign bonds, are transmitted to the yields in other markets. These include equity and corporate bond markets as well as relatively risk-free fixed income securities, such as highly rated asset-backed securities and sovereign bonds from core Eurozone countries. The authors analyse and compare the results from linear and non-linear models to identify and assess four distinct contagion channels characterizing both US and European financial markets. These include the correlated information, risk premium, flight-to-liquidity, and flight-to quality channels. The results of this study support the theory that both investors and policy-makers ought to pay special attention to liquidity and commonalities in the perceptions of the probabilities of default, as channels through which financial shocks propagate.

What Slice of the Pie? The Corporate Bond Market Boom in Emerging Economies

Author : Ms.Diana Ayala Pena
Publisher : International Monetary Fund
ISBN 13 : 1513539205
Total Pages : 45 pages
Book Rating : 4.5/5 (135 download)

DOWNLOAD NOW!

Book Synopsis What Slice of the Pie? The Corporate Bond Market Boom in Emerging Economies by : Ms.Diana Ayala Pena

Download or read book What Slice of the Pie? The Corporate Bond Market Boom in Emerging Economies written by Ms.Diana Ayala Pena and published by International Monetary Fund. This book was released on 2015-07-07 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the determinants of shifts in debt composition among EM non-financial corporates. We show that institutions and macro fundamentals create an enabling environment for bond market development. During the recent boom episode, however, global cyclical factors accounted for most of the variation of bond shares in total corporate debt. The sensitivity to global factors appears to vary with relative bond market size—which we interpret to be associated with liquidity and easy entry and exit—rather than local fundamentals. Foreign bank linkages help explain why bond markets increasingly substituted for banks in channeling liquidity to EMs. Our results highlight the risk of capital flow reversal in EMs that benefited from the upturn in the global financial cycle mostly due to their liquid markets rather than strong fundamentals.

Investing in Corporate Bonds and Credit Risk

Author : F. Hagenstein
Publisher : Springer
ISBN 13 : 0230523293
Total Pages : 355 pages
Book Rating : 4.2/5 (35 download)

DOWNLOAD NOW!

Book Synopsis Investing in Corporate Bonds and Credit Risk by : F. Hagenstein

Download or read book Investing in Corporate Bonds and Credit Risk written by F. Hagenstein and published by Springer. This book was released on 2004-10-01 with total page 355 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investing in Corporate Bonds and Credit Risk is a valuable tool for any corporate bond investor. All the most recent developments and strategies in investment in corporate bonds are analyzed included with qualitative and quantitative approaches. A complete and up-to-date investment process is developed through the book, using many examples taken from banking practice. The growing significance of derivative instruments and credit diversification to bond investors is also analyzed in detail.

International Pricing of Emerging Market Corporate Debt

Author : Ms.Sonja Keller
Publisher : International Monetary Fund
ISBN 13 : 1451962479
Total Pages : 39 pages
Book Rating : 4.4/5 (519 download)

DOWNLOAD NOW!

Book Synopsis International Pricing of Emerging Market Corporate Debt by : Ms.Sonja Keller

Download or read book International Pricing of Emerging Market Corporate Debt written by Ms.Sonja Keller and published by International Monetary Fund. This book was released on 2010-01-01 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine risk spreads charged on corporate bonds placed by emerging market borrowers on international exchanges. While global developments have an important effect on spreads, changes in firm-level default risk also matter significantly in a way consistent with theory and experience in mature markets. In contrast, except during periods of financial crisis, country factors play a limited role. These findings go against the supposition that limited information on emerging market firms or significant agency problems prevent firm-level credit discrimination by international investors. The firm-level information capitalization into spreads possibly reflects protection afforded by the exchange listing on international markets.

The Swedish Corporate Bond Market Challenges and Policy Recommendations

Author : OECD
Publisher : OECD Publishing
ISBN 13 : 9264621598
Total Pages : 66 pages
Book Rating : 4.2/5 (646 download)

DOWNLOAD NOW!

Book Synopsis The Swedish Corporate Bond Market Challenges and Policy Recommendations by : OECD

Download or read book The Swedish Corporate Bond Market Challenges and Policy Recommendations written by OECD and published by OECD Publishing. This book was released on 2024-04-04 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report provides an assessment of the Swedish corporate bond market and policy recommendations to improve its functioning, drawing from detailed empirical analysis and in-depth interviews with market participants.

The Resilience of the U.S. Corporate Bond Market During Financial Crises

Author : Bo Becker
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (125 download)

DOWNLOAD NOW!

Book Synopsis The Resilience of the U.S. Corporate Bond Market During Financial Crises by : Bo Becker

Download or read book The Resilience of the U.S. Corporate Bond Market During Financial Crises written by Bo Becker and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate bond markets proved remarkably resilient against a sharp contraction caused by the 2020 Covid-19 pandemic. We document three important findings: (1) bond issuance increased immediately when the contraction hit, whereas, in contrast, syndicated loan issuance was low; (2) Federal Reserve interventions increased bond issuance, while loan issuance also increased, but to a lesser degree; and (3) bond issuance was concentrated in the investment-grade segment for large and profitable issuers. We compare these results to previous crises and recessions and document similar patterns. We conclude that the U.S. bond market is an important and resilient source of funding for corporations.

Determinants of Credit Spreads

Author : Arne Wilkes
Publisher : Peter Lang Gmbh, Internationaler Verlag Der Wissenschaften
ISBN 13 : 9783631606049
Total Pages : 0 pages
Book Rating : 4.6/5 (6 download)

DOWNLOAD NOW!

Book Synopsis Determinants of Credit Spreads by : Arne Wilkes

Download or read book Determinants of Credit Spreads written by Arne Wilkes and published by Peter Lang Gmbh, Internationaler Verlag Der Wissenschaften. This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Credit spreads express how markets evaluate the riskiness of corporate bonds compared to risk-free investments. Since credit spreads have been highly volatile especially during the last decade it is important for academics and practitioners alike to understand the dynamic interdependencies between credit spreads and their determinants. Based on a sample of European corporate bonds and different macroeconomic variables the author analyzes the determinants of credit spreads during the period of 1999 to 2009. With a macro-finance term structure model he shows that the European corporate bond market is largely integrated with some remaining segmentation. Furthermore, panel regressions yield that declining liquidity leads to a significant widening of credit spreads especially during the recent financial crisis. Finally, he demonstrates based on a cointegration analysis that a long-term relationship exists between credit spreads and their determinants and that credit spreads were significantly overpriced after the collapse of Lehman Brothers but have almost returned to equilibrium towards the end of 2009.

The Financial Times Guide to Bond and Money Markets

Author : Glen Arnold
Publisher : Pearson UK
ISBN 13 : 0273791818
Total Pages : 381 pages
Book Rating : 4.2/5 (737 download)

DOWNLOAD NOW!

Book Synopsis The Financial Times Guide to Bond and Money Markets by : Glen Arnold

Download or read book The Financial Times Guide to Bond and Money Markets written by Glen Arnold and published by Pearson UK. This book was released on 2015-08-11 with total page 381 pages. Available in PDF, EPUB and Kindle. Book excerpt: This jargon-busting book shows how bond & money markets work & how they impact on everyday life. · Understand terms & products · Explore types of markets & their functions · Discover factors influencing market prices · Learn how fluctuations can affect your money strategies

Financial Fragility in the COVID-19 Crisis

Author : Antonio Falato
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (117 download)

DOWNLOAD NOW!

Book Synopsis Financial Fragility in the COVID-19 Crisis by : Antonio Falato

Download or read book Financial Fragility in the COVID-19 Crisis written by Antonio Falato and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In the decade following the financial crisis of 2008, investment funds in corporate bond markets became prominent market players and generated concerns of financial fragility. The COVID-19 crisis provides an opportunity to inspect their resilience in a major stress event. Using daily microdata, we document major outflows in these funds during this period, far greater than anything they experienced in past events. Large outflows were sustained over several weeks and were widespread across funds. Inspecting the role of sources of fragility, we show that both the illiquidity of fund assets and the vulnerability to fire sales were important factors in explaining outflows in this episode. The exposure to sectors most hurt by the COVID-19 crisis was also important. Two policy announcements by the Federal Reserve about extraordinary direct interventions in corporate-bond markets seem to have played an important role in calming down the panic and reversing the outflows.

Has International Financial CoMovement Changed?: Emerging Markets in the 20072009 Financial Crisis

Author :
Publisher : DIANE Publishing
ISBN 13 : 143794163X
Total Pages : 30 pages
Book Rating : 4.4/5 (379 download)

DOWNLOAD NOW!

Book Synopsis Has International Financial CoMovement Changed?: Emerging Markets in the 20072009 Financial Crisis by :

Download or read book Has International Financial CoMovement Changed?: Emerging Markets in the 20072009 Financial Crisis written by and published by DIANE Publishing. This book was released on with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Financial Markets and Financial Crises

Author : R. Glenn Hubbard
Publisher : University of Chicago Press
ISBN 13 : 9780226355887
Total Pages : 420 pages
Book Rating : 4.3/5 (558 download)

DOWNLOAD NOW!

Book Synopsis Financial Markets and Financial Crises by : R. Glenn Hubbard

Download or read book Financial Markets and Financial Crises written by R. Glenn Hubbard and published by University of Chicago Press. This book was released on 1991-08-13 with total page 420 pages. Available in PDF, EPUB and Kindle. Book excerpt: Warnings of the threat of an impending financial crisis are not new, but do we really know what constitutes an actual episode of crisis and how, once begun, it can be prevented from escalating into a full-blown economic collapse? Using both historical and contemporary episodes of breakdowns in financial trade, contributors to this volume draw insights from theory and empirical data, from the experience of closed and open economies worldwide, and from detailed case studies. They explore the susceptibility of American corporations to economic downturns; the origins of banking panics; and the behavior of financial markets during periods of crisis. Sever papers specifically address the current thrift crisis—including a detailed analysis of the over 500 FSLIC-insured thrifts in the southeast—and seriously challenge the value of recent measures aimed at preventing future collapse in that industry. Government economists and policy makers, scholars of industry and banking, and many in the business community will find these timely papers an invaluable reference.

Liquidity and Credit Risk Before and After the Global Financial Crisis

Author : David (Dongheon) Shin
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (13 download)

DOWNLOAD NOW!

Book Synopsis Liquidity and Credit Risk Before and After the Global Financial Crisis by : David (Dongheon) Shin

Download or read book Liquidity and Credit Risk Before and After the Global Financial Crisis written by David (Dongheon) Shin and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the impact of the recent global financial crisis on the determinants of corporate bond spreads, in particular, focusing on the impact of liquidity and credit risk on yield spreads using data regarding financial and non-financial bond issuers listed on the Korea Exchange (KRX). Our main findings reveal that the selected liquidity variables explain a relatively larger portion of the variation in yield spreads before and during the crisis period, whereas the credit risk component has become a more influential determinant of yield spreads after the crisis. This observation implies that investors in the Korean corporate bond market require more default risk premium in the post-crisis period in response to the increased uncertainty in the financial market with the amplified economic vulnerability.

The Incredible Upside-Down Fixed-Income Market: Negative Interest Rates and Their Implications

Author : Vineer Bhansali
Publisher : CFA Institute Research Foundation
ISBN 13 : 1952927196
Total Pages : 107 pages
Book Rating : 4.9/5 (529 download)

DOWNLOAD NOW!

Book Synopsis The Incredible Upside-Down Fixed-Income Market: Negative Interest Rates and Their Implications by : Vineer Bhansali

Download or read book The Incredible Upside-Down Fixed-Income Market: Negative Interest Rates and Their Implications written by Vineer Bhansali and published by CFA Institute Research Foundation. This book was released on 2021 with total page 107 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recorded financial history, there are almost no occasions, other than the present, where a significant portion of the global bond markets has been trading at negative nominal yields. Is this an anomaly or what will be the normal state of the financial markets in years to come? This monograph investigates the ongoing debate between the pros and cons of negative nominal yields and the economic rationale(s) that are used to justify or criticize underlying policies. Even in academic circles, few agree on the costs and benefits of negative yields. Surveying the global bond markets of the day, I find the impact of negative yields in almost all regions and sectors, though sovereign bond markets, which are closest to monetary policy, are the dominant category of bonds with negative yields. I next look at the participants in the negatively yielding bond market and at the motivations that justify their actions. The conclusion is that although different participants might have different reasons to buy negatively yielding bonds, their collective action is certainly responsible for creating a local equilibrium in which these markets clear. Central bank policy is the next focus in this monograph, and I discuss in depth the economic rationale as propounded by one such bank, the European Central Bank. I conclude with a discussion of the blurring lines between monetary and fiscal policy, which are likely to become centerpieces in future years as global sovereign debt levels rise. Next, I look at the influence of negative yields on other asset markets, such as equities, and especially derivatives markets, such as the demand for options. A discussion of potential risks then follows. The monograph concludes with a review of the impact of negative yields on nonfinancial aspects of society. Although the forecast is anything but crystal clear, the evolution of markets and economics in the years to come will undoubtedly be influenced by this massive economic experiment of negative yields.