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This paper introduces a measure that captures the premium in bond prices that is due to the value of creditor control. We estimate the premium as the difference in the bond price and an equivalent synthetic bond without control rights that is constructed using credit default swap (CDS) contracts. We find empirically that this premium increases as firm credit quality decreases and around important credit events such as defaults, bankruptcies, and covenant violations. The increase is greatest for bonds most pivotal to changes in control. Changes in bond and CDS liquidity do not appear to drive increases in the premium.

This paper uses the twin metaphors of 'gatekeeper' and 'gateway constructor' as devices to explore the role of Credit Rating Agencies (CRAs) as intermediaries between global corporate finance and specific institutions - housing associations in England. The analysis utilises a financialisation framing, whereby the practices, logics and measurements of finance capital, increasingly permeate government, institutional and household behaviour and discourse. This paper examines how housing associations have increasingly resorted to corporate bond finance, partly in response to reductions in government funding, and in the process engaged with CRAs.\ud \ud Surprisingly little research has been undertaken on the role and function of CRAs, and their impact on the organisations they rate. The case of housing associations (HAs) is of particular interest, given their historical social mission to build and manage properties to meet housing need, rather than operate as commercial private landlords conversant with market-based rationales. \ud \ud A case study of the large London-based HAs draws on a narrative and financial analysis of annual reports, supplemented by semi-structured interviews with senior HA finance officers to explore how CRA methodologies have been internalised and have contributed to changes in strategic and operational activities. \ud \ud We conclude that CRAs act both as a gatekeeper to the financial markets but also as a gateway constructor for the financial markets to enter new arenas, such as the HA sector. This dual nature of CRAs is intended as our contribution to emerging debates about the nature, the practice and the impact of financialisation on public services.

In this study we examine the volatility-adjusted 60/40 rule at the individual company level. We document that strong diversification benefits exist over the long-term, and that both the equity and corporate bonds exhibit positive expected drifts. For our sample of 30 large-cap companies, given that corporate bond positions have shown less volatility than the equity position, we leveraged the resultant portfolio of 60/40 to match that of the equity position. When we compare the two investments, we document an outperformance of 100 to 200 bps per year, even after we account for the leverage costs of 100 bps. We believe our work will open up a new risk investing paradigm for those seeking long-term advantages.

We develop a new measure of underwriter bargaining power and a novel empirical approach, based on underwriters’ comparative ability to place bonds. When an issuer has few “outside options” to take her bond to the market, the underwriter enjoys a stronger bargaining power over her. The key feature of our approach is that bargaining power varies for a given underwriter at a given point in time across different issuers, allowing us to separate the effects of bargaining power from those of reputation and certification with a fixed effects strategy. Using our measure, we document that powerful underwriters are able to extract rents at the expense of bond issuers. For issues with the highest underwriter bargaining power, fees and bond offering yields increase by a combined cost of USD 1.5 million, or about 7% of the average costs for the issuer. We rule out alternative mechanisms based on issuer-underwriter “loyalty”. Our findings suggest that lack of competition increases underwriter bargaining power, resulting in material costs for corporate bond issuers.

We develop a new measure of underwriter bargaining power and a novel empirical approach, based on underwriters’ comparative ability to place bonds. When an issuer has few “outside options” to take her bond to the market, the underwriter enjoys a stronger bargaining power over her. The key feature of our approach is that bargaining power varies for a given underwriter at a given point in time across different issuers, allowing us to separate the effects of bargaining power from those of reputation and certification with a fixed effects strategy. Using our measure, we document that powerful underwriters are able to extract rents at the expense of bond issuers. For issues with the highest underwriter bargaining power, fees and bond offering yields increase by a combined cost of USD 1.5 million, or about 7% of the average costs for the issuer. We rule out alternative mechanisms based on issuer-underwriter “loyalty”. Our findings suggest that lack of competition increases underwriter bargaining power, resulting in material costs for corporate bond issuers.

We ask whether a standard structural model (Black and Cox, 1976) is able to explain credit spreads on corporate bonds and, in contrast to much of the literature, we find that the model matches the level of investment grade spreads well. Model spreads for speculative grade debt are too low and we find that bond illiquidity contributes to this underpricing. Our analysis makes use of a new approach for calibrating the model to historical default rates that leads to much more precise estimates of investment grade default probabilities.

Purpose. The need for technological modernization of the railway industry in Ukraine, creation of favorable conditions for investment and introduction of innovations in the industry require significant financial resources. The purpose of the article is investigation of possible sources of attracting financial resources necessary for development of Ukrainian railway transport, in particular, during further organizational arrangements and procedures for the railway industry corporatization to search for ways to optimize them. Methodology. During research the methods of comparison, scientific search, analysis and synthesis were used to study the existing sources of financing for corporations abroad and at Ukrainian enterprises. Findings. Analysis of the existing and search for more efficient sources of financial resources necessary for financing Ukrainian railway transport modernization in the process of the railway industry corporatization is carried out. The growth of the financial results share in the amount of internal own resources is achieved by taking measures to increase profits. A significant part of the economic activities financing can be provided by issuing corporate bonds with the presence of positive effect of the financial leverage. Accounting of the financial leverage effect is an efficient tool for optimizing the structure of the share capital and determining the expediency of loan resources. In the process of corporatization, PJSC «Ukrzaliznytsia» should create an efficient system of financial resources that fully takes into account the specifics of its activities, motivates to increase labor productivity with the ultimate purpose of ensuring the external competitiveness of the Ukrainian railway industry. Originality. Based on the study of scientific and methodological sources, as well as the analysis of sources for financing the economic activities of railway transport, the ways of their optimization are proposed. Practical value. Introduction of the proposed approaches will make it possible to justify the economic feasibility and proportionality of internal and external sources of the railway transport financing under the conditions of corporatization., Цель. Необходимость технологичной модернизации железнодорожной отрасли Украины, создание благоприятных условий для инвестирования и внедрение инноваций в отрасли требуют значительных финансовых ресурсов. Цель статьи – исследование возможных источников привлечения финансовых ресурсов, необходимых для развития железнодорожного транспорта Украины, в частности, при проведении дальнейших организационных мероприятий и процедур акционирования железнодорожной отрасли с целью поиска путей их оптимизации. Методика. В процессе исследования использованы методы сравнения, научного поиска, анализа и синтеза для изучения существующих источников финансирования корпораций за рубежом и на предприятиях Украины. Результаты. Проведен анализ существующих и поиск более эффективных источников формирования финансовых ресурсов, необходимых для финансирования модернизации железнодорожного транспорта в Украине в процессе акционирования железнодорожной отрасли. Рост доли финансовых результатов в сумме внутренних собственных ресурсов достигается путем проведения мероприятий по увеличению прибыли. Значительную часть финансирования хозяйственной деятельности возможно обеспечить за счет эмиссии корпоративных облигаций при наличии положительного эффекта финансового рычага. Учет эффекта финансового рычага является эффективным инструментом оптимизации структуры акционерного капитала и определения целесообразности привлечения заемных ресурсов. В процессе акционирования ПАО «Украинская железная дорога» должна создать эффективную систему финансовых ресурсов, которая бы в полной мере учитывала особенности ее деятельности, мотивировала к повышению производительности труда с конечной целью – обеспечить внешнюю конкурентоспособность железнодорожной отрасли Украины. Научная новизна. На основании изучения научных и методических источников, а также анализа источников финансирования хозяйственной деятельности железнодорожного транспорта предложены пути их оптимизации. Практическая значимость. Внедрение предложенных подходов позволит обосновать экономическую целесообразность и пропорциональность внутренних и внешних источников финансирования железнодорожного транспорта в условиях корпоратизации., Мета. Необхідність технологічної модернізації залізничної галузі України, створення сприятливих умов для інвестування та впровадження інновацій у галузі потребують значних фінансових ресурсів. Використання на залізничному транспорті ефективних методів фінансування набуває особливої актуальності в процесі реалізації стратегії розвитку галузі. Метою статті є дослідження можливих джерел залучення фінансових ресурсів, необхідних для розвитку залізничного транспорту в Україні, зокрема, під час проведення подальших організаційних заходів і процедур щодо акціонування залізничної галузі з метою пошуку шляхів їх оптимізації. Методика. У процесі дослідження використані методи порівняння, наукового пошуку, аналізу й синтезу для вивчення наявних джерел фінансування діяльності корпорацій за кордоном та на підприємствах України. Результати. Проведено аналіз наявних і пошук більш ефективних джерел формування фінансових ресурсів, необхідних для фінансування модернізації залізничного транспорту в Україні в процесі акціонування залізничної галузі. Зростання частки фінансових результатів у сумі внутрішніх власних ресурсів досягається шляхом проведення заходів зі збільшення чистого прибутку. Значну частину фінансування господарської діяльності можна забезпечити за рахунок емісії корпоративних облігацій за умови наявності позитивного ефекту фінансового важеля. Урахування ефекту фінансового важеля є ефективним інструментом оптимізації структури акціонерного капіталу та визначення доцільності залучення позикових ресурсів. У процесі акціонування ПАТ «Українська залізниця» повинна створити ефективну систему фінансових ресурсів, яка б повною мірою враховувала особливості її діяльності, мотивувала до підвищення продуктивності праці з кінцевою метою – забезпечити зовнішню конкурентоспроможність залізничної галузі України. Наукова новизна. На основі вивчення наукових і методичних джерел та на базі аналізу джерел фінансування господарської діяльності залізничного транспорту запропоновані шляхи їх оптимізації. Практична значимість. Упровадження запропонованих підходів дозволить обґрунтувати економічну доцільність і пропорції внутрішніх та зовнішніх джерел фінансування залізничного транспорту в умовах корпоратизації.

In the article features of formation of financial resources of the enterprises are considered. Corporate bonds and their role as tools for attracting resources are analyzed, problems and prospects of the debt securities market of enterprises are shown. The analytical basis for the assessment of activity on the corporate bond market covers the period of 2012–2016. The peculiarities of the development of the corporate bonds market in Ukraine are determined. The necessity of stimulating the growth of volumes of the corporate bonds market, and, above all, in the real sector of the economy, is substantiated. &nbsp

In recent years, new energy sources have ushered in tremendous opportunities for development. The difficulties to finance new energy enterprises (NEEs) can be estimated through issuing corporate bonds. However, there are few scientific and reasonable methods to assess the credit risk of NEE bonds, which is not conducive to the healthy development of NEEs. Based on this, this paper analyzes the advantages and risks of NEEs issuing bonds and the main factors affecting the credit risk of NEE bonds, constructs a hybrid model for assessing the credit risk of NEE bonds based on factor analysis and logistic regress analysis techniques, and verifies the applicability and effectiveness of the model employing relevant data from 46 Chinese NEEs. The results show that the main factors affecting the credit risk of NEE bonds are internal factors involving the company’s profitability, solvency, operational ability, growth potential, asset structure and viability, and external factors including macroeconomic environment and energy policy support. Based on the empirical results and the exact situation of China’s NEE bonds, this article finally puts forward several targeted recommendations.

We find that four well-known characteristics (carry, defensive, momentum and value) explain a significant portion of the cross-sectional variation in corporate bond excess returns. These characteristics have positive risk-adjusted expected returns and are not subsumed by traditional market premia or respective equity anomalies. The returns are economically significant, not explained by macroeconomic exposures, and there is some evidence that mispricing plays a role, especially for momentum.

This research report is the result of a partnership between the World Bank Group (WBG) and Government Pension Investment Fund (GPIF) of Japan, initiated by the World Bank Group's President, Jim Yong Kim, and GPIF's Chief Investment Officer, Hiro Mizuno. The aim is for the World Bank and IFC – member of the World Bank Group focused on the private sector – and GPIF to collaborate on initiatives that promote strategies for including environmental, social and governance (ESG) criteria in investment decisions across asset classes. Ultimately, the goal is to direct more capital towards sustainable investments and leverage the private sector to achieve the scale of investment needed to meet the Sustainable Development Goals.

We show that corporate bond issuers benefit from utilizing existing underwriter relationships when rolling over bonds, but at the same time become exposed to underwriter distress. A strong relationship enables the underwriter to credibly certify the issuer resulting in lower direct issuance costs and lower underpricing. However, if the underwriter becomes distressed, this spills over to the issuer’s credit risk, because it weakens the relationship and increases the risk of involuntary relationship termination. The credit risk spillover is more pronounced for risky, opaque issuers with high rollover exposure, i.e., those issuers most in need of certification by an underwriter.

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We examine dealers’ liquidity provision against mispricing in the corporate bond market from 2005 to 2009. Dealers on average serve as stabilizing liquidity providers by trading against widening price gaps between corporate bonds and credit default swaps (the CDS–bond basis). However, dealers cut back on liquidity provision as they suffer losses, mispricing becomes wider, or the funding situation worsens, consistent with the limited capital capacity of financial intermediaries. We also show that the unwinding of basis arbitrage trading can amplify mispricing by documenting that bond returns following the Lehman collapse were very low for bonds with strong preexisting basis arbitrage activity and for bonds underwritten by Lehman Brothers. Liquidity demand due to the exit of arbitrageurs can be a major driver of disruption in credit markets. This paper was accepted by Lauren Cohen, finance.

We study the impact of transparency on liquidity in OTC markets. We do so by providing an analysis of liquidity in a corporate bond market without trade transparency (Germany), and comparing our findings to a market with full post-trade disclosure (the U.S.). We employ a unique regulatory dataset of transactions of German financial institutions from 2008 until 2014 to find that: First, overall trading activity is much lower in the German market than in the U.S. Second, similar to the U.S., the determinants of German corporate bond liquidity are in line with search theories of OTC markets. Third, surprisingly, frequently traded German bonds have transaction costs that are 39-61 bp lower than a matched sample of bonds in the U.S. Our results support the notion that, while market liquidity is generally higher in transparent markets, a sub-set of bonds could be more liquid in more opaque markets because of investors "crowding" their demand into a small number of more actively traded securities.

Which markets do institutions use to change exposure to credit risk? Using a unique data set of transactions in corporate bonds and credit default swaps (CDS) by large financial institutions, we show that simultaneous transactions in both markets are rare, with an average institution having an 11 percent probability of transacting in both the CDS and bond markets in the same entity in an average week. When institutions do transact in both markets simultaneously, they increase their speculative positions in CDS by 13 cents per dollar of bond transactions, and their hedging positions by 13 cents per dollar of bond transactions. We find evidence that, during the post-crisis rule implementation period, the incentive to use paired transactions is reduced but so is the incentive to take naked positions in the CDS market. When single name contracts become eligible for central clearing, globally systemically important institutions become more likely to use single name CDS contracts. Finally, we show that, in the aggregate, U.S. globally systemically important institutions reduce their exposure to corporate credit risk in the rule implementation period, primarily through reducing the amount of credit protection sold in the index CDS market.

We assess the contribution of economic and financial factors in the determination of euro area corporate bond spreads over the period 2001-2015. The proposed multi-market, no-arbitrage affine term structure model is based on the methodology proposed by Dewachter, Iania, Lyrio, and Perea (2015). We model jointly the risk-free curve, measured by overnight index swap (OIS) rates, and the corporate yield curves for two rating classes (A and BBB). The model includes four spanned and six unspanned factors. We find that, in general, both economic (real activity and inflation) and financial factors (proxying risk aversion, flight to liquidity and general financial market stress) play a significant role in the determination of the spanned factors and hence in the dynamics of the risk-free yield curve and corporate bond spreads. Across the risk-free OIS curve, macroeconomic and financial factors are each responsible on average for explaining 30 and 65 percent of yield variation, respectively. For A and BBB-rated corporate debt, the selected financial variables explain on average 50 percent of the variation in corporate spreads during the last decade.

We show that corporate bond issuers benefit from utilizing existing underwriter relationships when rolling over bonds, but at the same time become exposed to underwriter distress. A strong relationship enables the underwriter to credibly certify the issuer resulting in lower direct issuance costs and lower underpricing. However, if the underwriter becomes distressed, this spills over to the issuer’s credit risk, because it weakens the relationship and increases the risk of involuntary relationship termination. The credit risk spillover is more pronounced for risky, opaque issuers with high rollover exposure, i.e., those issuers most in need of certification by an underwriter.

Efter finanskrisen 2008 blev bankerna mer restriktiva i sin utlåning till företag, vilket har resulterat i att företag söker alternativ finansiering via kapitalmarknaden. Utvecklingen kan härledas till implementeringen av den nya finansiella regleringen (Basel III). I den här uppsatsen analyserar jag den svenska marknaden för företagsobligationer. Jag undersöker vad som ligger bakom den kraftiga tillväxten samt hur marknaden kan komma att utvecklas framöver. Examensarbetet baseras på intervjuer med personer inom finanssektorn och tidigare forskning.På senare år har marknadsplatser såsom First North Bond Market och Räntetorget upprättats med syftet att göra marknaden mer tillgänglig för mindre företag. Till följd av detta har emissionsvolymen av företag med lägre kreditvärdighet eller utan officiellt kreditbetyg ökat. Dessutom har företagsobligationsmarknaden gynnats av historiskt låg realränta och en stark konjunktur. Since the financial crisis 2008 banks have been more restrictive in their lendings to companies, leading to companies seeking alternatives funding through the capital markets.The development can be derived from the implementation of the new financial regulation (Basel III). In this paper, I analyze the Swedish corporate bond market. I investigate what is behind the strong growth and how the market may develop in the future. The thesis is based on interviews with people in the financial sector as well as previous reserach.In recent year, markets such as First North Bond Market and Räntetorget have been created with the aim of making the market more accessible to smaller companies. As a result, the volume of emissions of companies with lower credit ratings or without official credit ratings has increased. In addition, the corporate bond market has benefited from historically low real interest rates and a strong business cycle.

International audience; In most illiquid markets, there is no obvious proxy for the market price of an asset. The European corporate bond market is an archetypal example of such an illiquid market where mid-prices can only be estimated with a statistical model. In this OTC market, dealers/market makers only have access, indeed, to partial information about the market. In real time, they know the price associated with their trades on the dealer-to-dealer (D2D) and dealer-to-client (D2C) markets, they know the result of the requests for quotes (RFQ) they answered, and they have access to composite prices (e.g., Bloomberg CBBT). This paper presents a Bayesian method for estimating the mid-price of corporate bonds by using the real-time information available to a dealer. This method relies on recent ideas coming from the particle filtering/sequential Monte Carlo literature.

Against the backdrop of important structural reforms and terms of trade gains, India recorded strong growth in recent years in both economic activity and financial assets. Increased diversification, commercial orientation, and technology-driven inclusion have supported growth in the financial industry, backed by improved legal, regulatory, and supervisory frameworks. Yet, the financial sector is grappling with significant challenges, and growth has recently slowed. Highnonperforming assets (NPAs) and slow deleveraging and repair of corporate balance sheets are testing the resilience of the banking system and holding back investment and growth. The largest banks appear sufficiently capitalized and profitable to withstand a deterioration in economic conditions, reflecting relatively solid capital buffers and, particularly for the private banks, core profitability that is strong enough to cover credit costs. There is a group of public sector banks (PSBs) where vulnerabilities seem highest; these banks would require additional capital under the baseline scenario and some would almost deplete capital buffers due to growing NPAs and provisioning needs if stress intensifies. Capital needs are manageable in the aggregate, ranging between 0.75 percent of GDP in the baseline to 1.5 percent of GDP in the severe adverse scenario. Much needed efforts are now underway to accelerate the process of NPA resolution. The various debt restructuring schemes introduced over the past years have had limited uptake, and agreement among lenders has been hampered by their uneven capacity to withstand losses. The RBI was recently empowered to direct restructuring cases to the insolvency process, with the potential for insolvency used to exert pressure on creditors to finalize debt restructuring agreements outside the court process. This new approach shows promise of further progress, but more needs to be done to ensure that the debt restructuring process gains traction: banks need additional provisions and capital buffers; corporates need to undergo sustainable financial and operational restructuring; and infrastructure for debt restructuring needs to be improved.

This paper documents to what extent firms from developing countries borrow short versus long term, using data on corporate bond and syndicated loan markets. Contrary to claims in the literature based on firm balance sheets, firms from developing countries borrow through bonds and syndicated loans at maturities similar to those obtained by developed country firms. The composition and use of financing matters. Firms from developing countries borrow shorter term in domestic bond markets, but the differences in international issuances (accounting for most of the proceeds) are significantly smaller. Developing country firms borrow longer term in syndicated loan markets, which they partially use for infrastructure projects. However, only large firms from developing countries (similar in size to those from developed ones) issue bonds and syndicated loans. The short-termism in developing countries is partly explained by a lower proportion of firms using these markets, with more firms relying on other shorter-term instruments.

This Technical Note examines India’s securities market and the regulatory system overseeing the securities market and market participants. It is based upon a mission to Mumbai, India from March 14 – 31, 2017, conducted as one component of a joint IMF-World Bank Financial Sector Assessment Program (FSAP). This Note updates a detailed IOSCO assessment that was conducted from June 15 to July 1, 2011 as part of an FSAP and published in August 2013. It examines the changes that have occurred in India’s securities markets since the last assessment and the changes that have occurred in the regulation of this market.

By the end of 2010, corporate bonds had not been very popular in Poland. Most of the issues were not public, which limited their volume and value, and mainly resulted from the lack of a proper public market for trading. The situation changed in September 2009 when the Warsaw Stock Exchange launched the bond market Catalyst that is a public market for trading in debt instruments. The aim of this work is to analyse corporate bonds available on Catalyst to prove that this market has become a significant place for raising capital by companies and has influenced popularity of bonds as a source of financing business activity. The primary methods used during the preparation of this work included: analysis of legal acts and papers on the Catalyst market. The author also conducted an analysis of statistical data on, for example, number of issuers as well as the volume and value of issues over the whole period of Catalyst operations, i.e. from September 2009 until the end of the first half of 2014.The analysis allowed achieving the aim and confirmed that launching the Catalyst market encouraged companies to raise funding through issues of bonds.

We analyze whether green bonds are traded on a premium versus conventional issuances of the same issuer. We estimate the difference in yield between a sample of 160 green bonds and a synthetic conventional bond with identical characteristics. The paper finds that green bonds have been traded on slightly higher yields than conventional bonds. This premium seems to decline in 2016 and 2017. Our data suggests that there is no significant difference between the developed and emerging markets and between different industry groups.

O presente trabalho visa compreender até que ponto o empréstimo obrigacionista pode ser uma alternativa de financiamento de médio e longo prazo para as empresas, relativamente ao empréstimo bancário em Moçambique. A relevância da presente pesquisa está no facto de poder, quantitativamente assim como qualitativamente mostrar os custos associados ao financiamento obrigacionista, o que poderá orientar melhor os gestores de empresa no processo de financiamento. Para o alcance do objetivo geral, o estudo procurará alcançar os seguintes objetivos específicos: apresentar a evolução das formas de financiamento de médio e longo prazo recorridos pelas grandes empresas em Moçambique no período compreendido de 2005 a 2017; analisar o desempenho do mercado de crédito bancário e de valores mobiliários como veículos de acesso ao financiamento de empresas em Moçambique, durante o período de 2005 a 2017; ilustrar a montagem da operação do empréstimo obrigacionista da Companhia de Moçambique, de modo a estimar os respetivos custos efetivos dessa forma de financiamento; determinar os custos efetivos de uma simulação de um empréstimo bancário para a mesma empresa, com vista a comparar com os custos do empréstimo obrigacionista; apresentar os resultados de um inquérito realizado às empresas, de modo a perceber se existe conhecimento acerca de mercado de capitais, e se existe algum interesse em aderir a esta forma de financiamento; contribuindo assim para a escassa evidência empírica encontrada sobre o tema obrigações privadas, e a sua utilidade no financiamento das empresas em Moçambique, o que torna o tema mais interessante, atual e importante. Em geral, as empresas optam pelo crédito bancário, umas pela falta de conhecimento acerca das vantagens da emissão de obrigações privadas, outras por não preencherem os requisitos para aderirem ao mercado de capitais. Apenas um número reduzido de empresas já emitiu uma obrigação privada, mesmo ficando provado que esta forma de financiamento acarreta menos custos. Por fim, de todas razões para esta realidade, destaca-se a falta de investidores interessados neste produto financeiro e a dificuldade em encontrar acessorias financeiras. The following work aims to understand to which extent bond issuing can be used as an alternative to replace long and medium term bank credit for Mozambican companies in Mozambique. The relevance of the following research is in the fact that it aims to show both in quality and quantity the costs related to the types of debt mentioned above (bond issuing versus bank credit) and ultimately, give a guidance to managers on how can they best finance their companies. To reach this goal the research aimed for the following: to present the evolution of the medium and long term credit bank made by large Mozambican companies between 2005 and 2017, analyse the performance of the credit market, both given by Banks and the local Securities and Exchange Commission (Bolsa de valores de Moçambique), between the same period mentioned above, give a concrete example regarding bond issuing with a company called Companhia de Moçambique. The ultimate goal of this example is to estimate the costs of this form of debt by comparing the effective cost of a banking debt based on a simulation to the same company. In light of the present work, a survey was conducted in order to understand to which extent Mozambican companies where aware of the existence capital markets and if they had an interest in adopting this kind of debt. In general, the reason behind the preference for banking credit by Mozambican companies lies in the fact that in part, these companies lack the knowledge regarding the advantages of capital Markets. Adding to this, there are few Mozambican companies who can effectively issue corporate debt due to their legislature status (difference between privately owned and public companies). Beside the reasons mentioned above, I do believe that the one that stands the most is the fact there are fewer investors interested in corporate bonds or related financial instruments.

In article features of development of a national economy, maintenance with its technics and technologies, in particular, importance of investments for export on the world market of qualitative and competitive production, necessity of development of the share market of the country with a view of increase in investment means, and also tools of the share market, securities and their legal aspects are stated. The present condition and prospects of the share market of Republic Uzbekistan and the recommendation for their achievements is besides, stated., {"references":["Shokhazamii, Sh. Sh. (2007). Finansovyi rynok i tsennyye bumagi. Tashkent, Iqtisod-moliya, 474","de Soto, E. (2001). Sekret kapitala. Pochemu kapitalizm torzhestvuyet na Zapade i terpit porazheniye vo vsyom ostalinom mire. The lane with English. Moscow, Olimp-Biznes, 272","Khiks, Dzh. R. (1988). Stoimost i kapital. Moscow, Progress, 365","Torkanovskii, V. S. (ed.). (1994). Rynok tsennykh bumag i yego finansovyye instrumenty. St. Peterdburg, Komplekt, 421","Kolesnikov, V. I., & Torkanovskii, V. S. (eds.). (2000). Tsennyye bumagi. The second edition, processed and added. Moscow, Finansy i statistika, 448"]}

The capital market is one of many sites that allows raising capital by companies. One of the instruments in the capital market are corporate bonds. The purpose of this article is to analyze methods of cost management issue bonds on the Catalyst market. The following research problems were identified: What are the costs of issuing bonds in the Catalyst market? Which of the costs associated with capital raising through bond issue dominate the corporate bond issue on Catalyst? What are the methods of managing bond issuance costs on the Catalyst? The article presents the base of the structure of corporate bonds, the range of the cost of issuing bonds on the Catalyst market. The analysis of the regulations and resolutions of Catalyst and KDPW, as well as the method of simulation of bond issue costs, were used to analyze bond issuance costs in the Catalyst market. Based on the simulations the issue of bonds in the period of 4 years were calculated costs that have to be incurred to handle the new bond issue. In the case of a bond issue company-issuer must manage the costs associated with the preparation of the issue, that is, the costs of preparing the prospectus, as well as resulting from the fees of the Stock Exchange and the National Depository for Securities, which are related to the introduction of bonds on Catalyst. Comparison of several variants of the issue that way, the actual cost of raising capital on the Catalyst market and the preferred method of cost management such emissions.

We examine the factors that influence borrower’s choice between structured finance (SF) and straight debt finance (SDF). Using a sample of 12,075 Western European loans and bonds issued between 2000 and 2011, we find that borrowers choose SF when they seek long-term financing and funding cost reduction. Our results document that floatation costs, information asymmetry, and renegotiation and liquidation risks affect non-financial firms’ financing decisions. We also find that banks choose securitization to raise relatively large amounts of debt and improve economic performance. Our overall findings support hypotheses of SF as mechanism for asymmetric information problem and principal-agent conflict reduction.

This master thesis presents corporate hybrid bonds. This little-known type of bond borrows features from equities, as well as from classic corporate bonds. After a general presentation of the corporate hybrid bonds’ main features and markets, this paper develops the mains characteristics of the hybrid bonds and their main advantages and disadvantages for issuers and for investors. All these theoretical elements are developed in the case study concerning Solvay’s issuance of 2015. Solvay indeed issued €1bn hybrid bonds to finance the acquisition of Cytec. The main features of these bonds are presented as well as the rationale for the issuance of this type of corporate bond. Finally, impacts on the WACC, Yield Curves and the Capital Structure are studied Master [120] en Ingénieur de gestion, Université catholique de Louvain, 2017

We show that corporate bond issuers benefit from utilizing existing underwriter relationships when rolling over bonds, but at the same time become exposed to underwriter distress. A strong relationship enables the underwriter to credibly certify the issuer resulting in lower direct issuance costs and lower underpricing. However, if the underwriter becomes distressed, this spills over to the issuer's credit risk, because it weakens the relationship and increases the risk of involuntary relationship termination. The credit risk spillover is more pronounced for risky, opaque issuers with high rollover exposure, i.e., those issuers most in need of certification by an underwriter.

I examine the relative informational efficiency of bonds and the underlying stocks through the lead-lag relation between their daily returns. I find that stock returns lead the returns of high yield bonds but not those of investment grade bonds, which indicates that the stock market is relatively more informational efficient than the bond market. The findings imply trading opportunities for the bonds that are highly sensitive to the release of new information. I also find that stocks detect impending defaults earlier than bonds, which implies that bond holders may have enough time to protect their capital.

We find that illiquidity remains a major factor in explaining corporate spreads. Illiquidity is second only to the credit risk itself. This effect is surprising given that the corporate debt trading activity has more than doubled in the US since the financial crisis of 2008. Longer bonds are substantially more illiquid than shorter bonds as one additional year in time to mature dries liquidity by 16%. We regress monthly cross-sectional corporate yield spreads on our return-based illiquidity measure, controlling for other variables such as the CDS spread and volatility. We find that a one standard deviation increase in illiquidity widens spreads by 26 basis points. Nós encontramos que a iliquidez remanesce um importante fator explicativo em spreads de títulos corporativos. A iliquidez é menos importante somente do que o próprio risco de crédito. Este efeito é surpreendente dado que o volume de negociação de dívida privada mais do que dobrou nos EUA desde a crise financeira de 2008. Títulos longos são substancialmente mais ilíquidos do que títulos mais curtos, uma vez que um ano adicional na maturidade seca a liquidez em 16%. Nós regredimos cross-sections mensais de spreads de taxas privadas em nossa medida de iliquidez baseada em retornos, controlando por outro fatores como o CDS e a volatilidade. Nós encontramos que um aumento de um desvio padrão na iliquidez aumenta os spreads em 26 pontos-base.

This paper adopts a multivariate GARCH framework to examine conditional correlations and volatility linkages between sukuk (Islamic bonds) and conventional bond markets in Europe, the United States, and emerging markets. We find that sukuk and conventional investment-grade bonds have a lower reaction of conditional volatility to market shocks and higher persistence; we also find that sukuk returns are much less volatile than U.S. and EU investment-grade bonds. Further, we find a time-varying, positive, conditional correlation between sukuk returns and leading bond markets, which is driven by changing macroeconomic and market conditions. We observe that during recessions, the dynamic correlation between sukuk and bond markets tends to increase. Moreover, we unveil structural breakpoints in paths of dynamic correlations corresponding to external shocks, such as the sovereign debt crisis and the Federal Reserve’s tapering announcements. Finally, we examine how market-wide factors affect correlations. We find significant behavioral shifts in the sukuk-bonds relationship, which are explained by market liquidity, crude oil prices, U.S. credit information, and stock market uncertainty. Our results have useful implications for sukuk issuers, portfolio managers, and risk managers in both emerging and developed markets.

This paper investigates the causal impact of oil price fluctuations on financial markets since January 2014. Following a heteroscedasticity-based event study approach, the paper instruments changes in oil prices by exogenous shocks in oil supply. It finds that oil price declines raise uncertainty and hurt risky assets (U.S. stocks and high-yield corporate bonds) while lifting safe assets (U.S. investment-grade bonds and long-term Treasury bonds). In addition, lower oil prices boost the U.S. dollar and reduce the prices of emerging market equities. Remarkably, the declines in oil prices hurt several sectors that supposedly benefit from lower oil prices, such as basic materials, industrials, and transportation.

This dissertation explains the puzzling negative relationship between changes in stock volatility and credit spreads of corporate bonds. This relationship has been encountered in some empirical studies but has remained unexplained in the theoretical literature, which unanimously suggests the opposite relationship. This dissertation shows that this negative relationship can be produced by the dynamic endogenous asset composition of borrowing firms. On the one hand, higher asset volatility corresponds to lower future volatility of the firm's investments and lower credit spreads if the firm can reallocate resources optimally. On the other hand, short-term stock volatility corresponds to the current allocation of resources and thus increases with asset volatility. The combination of these two effects produces the negative relationship between changes in stock volatility and credit spreads. The empirical part of the dissertation shows that the relationship between changes in stock market volatility and credit spreads of long-term, high-quality corporate bonds (controlling for other variables) is negative, robust, and economically significant. Consistent with the predictions in this dissertation, the corresponding regression coefficient is a U-shaped function of the credit quality of the bonds. In addition, the dissertation shows that the relationship changes its sign in distressed market conditions and that a combination of normal and distressed market conditions can produce erroneous results.

The paper uses a reduced-form vector autoregressive framework to study the effects of quantitative easing and operation “twist”, as well as a conventional monetary expansion, on corporate bond yields and spreads. We construct rating- and maturity-based weekly bond portfolios using TRACE and simulate monetary policies as shocks to the Treasury yield curve. We find that none of the policies can persistently lower corporate spreads, and that operation twist is the only policy capable of lowering corporate yields. This latter finding can be accounted for by the operation twist’s ability to keep the monetary base constant and, therefore, to flatten the riskless yield curve without generating inflationary expectations.

This paper contains an analysis of the corporate bonds’ market in Romania between 1997 and 2013 by using data contained in the 27 public offerings of corporate bonds made by national or international companies. Among the features of bond loans, that were used in this research, are: the nominal value of a bond, the loan type and interest rate, issuers and their economic sectors, maturity, type of bonds, state of trading, different conditions imposed to investors etc. At the end of the work paper were highlighted funding costs and the risks that it incurs.

This thesis analyzes if and to what extent debt markets value the environmental, social and governance (ESG) performance of firms and sovereigns. The first chapter shows that negative ESG news has a negative impact on the cost of debt of firms. The news relates to environmental and social events within the industrial/utilities sector. In this sector, a sound corporate social performance acts as an insurance against the adverse impact of negative environmental events on bond prices. The second chapter reveals that ESG scores integrated into portfolios do not change the financial performance ex post. A portfolio manager can increase the average ESG rating of her portfolio by 1.5 standard deviations without incurring cost. This leaves substantial room and opportunity for ESG ratings to be combined with asset allocation or absolute return strategies. The third chapter shows how ESG performance is linked to a lower cost of debt of emerging sovereigns. Research indicates that an emerging country’s average cost of capital decreases with its positive environmental and social performance. The fourth chapter discusses how governance performance may influence the spread of debt denominated in local and foreign currency. In developed countries, the spread between a foreign currency yield and a hedged local currency yield increases with our political risk indicator, i.e. the foreign yield increases faster than the domestic one. For emerging countries, the reverse trend is true. Interestingly, the foreign currency and local currency yield spreads move significantly stronger in absolute terms with increasing foreign investment participation in both emerging countries and developed countries’ debt markets., Cette thèse a pour ambition d’analyser si la performance environnementale, sociale et de gouvernance (ESG) est intégrée par les marchés de la dette d'entreprise et souveraine. Le premier chapitre se concentre sur les informations ESG publiés à contenu négatif et leur impact négatif sur le coût de la dette. Plus exactement, dans les secteurs industriels et utilitaires les événements négatifs sociaux et de gouvernance font augmenter le coût de la dette. Également, un bon niveau général de performance ESG agit comme un mécanisme d'assurance contre ces événements négatifs. Dans un deuxième chapitre seront présentés les résultats d’une simulation de portefeuille intégrant la performance ESG d'entreprise. Un gérant de portefeuille peut améliorer le niveau agrégé de la performance ESG du portefeuille de 1,5 écart-type sans faire baisser la performance financière. Ainsi, le gérant peut combiner cette intégration avec des stratégies d'allocation d'actif financiers ou des stratégies de rendement absolu. Dans un troisième chapitre les résultats sur la réduction du coût de la dette dû à une bonne performance environnementale et sociale de souverains émergents seront analysés. Enfin dans le quatrième chapitre je décris comment la performance de gouvernance des souverains influence la différence entre le yield émis en devise étrangère et celui émis en devise locale. Dans les pays développés cette différence augmente avec le risque politique, i.e. le yield étranger augmente plus rapidement que le yield domestique. Dans les pays émergents, c'est l’effet inverse qui est observé. Cette différence entre les deux yields varie plus fortement avec un taux croissant de la dette domestique détenue par des investisseurs étrangers.

This paper studies the link between secondary market liquidity for a corporate bond and the bond&rsquo, 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&rsquo, cost of capital, and they contribute to the literature which examines the impact of liquidity on asset prices.

O objetivo nesse trabalho é a construção da Estrutura a Termo de Taxa de Juros (ETTJ) das debêntures que se encontram disponíveis no mercado brasileiro, usando o modelo Nelson-Siegel (1987). As curvas de juros são divididas de acordo com o tipo de indexador e com a classificação de risco atribuída às debêntures. Por fim, foi possível mensurar o spread que existe entre o mercado de títulos privados (debêntures) e os títulos públicos.El objetivo en este trabajo es determinar la estructura temporal de tipos de interés (ETTI) de los bonos que se encuentran disponibles en el mercado brasileño, por medio del uso del modelo de Nelson-Siegel (1987). Las curvas de rendimientos fueron divididas de acuerdo con el tipo de índice y con la clasificación de riesgo atribuida a los bonos. Fue posible medir el spread entre el mercado de bonos corporativos (debentures) y el mercado de los títulos del Estado.The aim of this work is to establish a term structure of interest rates for corporate bonds in the Brazilian market, using the Nelson-Siegel model (1987). The yield curves were divided by the type of index and the rating level. It was possible to measure the spread between the corporate bonds market and the government bonds market.

Neste trabalho, teve-se como objetivo identificar o impacto do risco de liquidez nos retornos excedentes esperados das debêntures no mercado secundário brasileiro. Foram realizadas análises de regressão em painel desbalanceado com dados semestrais de 101 debêntures ao longo de oito semestres (primeiro semestre de 2006 ao segundo semestre de 2009), totalizando 382 observações. Sete proxies (spread de compra e venda, %zero returns, idade, volume de emissão, valor nominal de emissão, quantidade emitida e %tempo) foram utilizadas para testar o impacto do risco de liquidez nos yield spreads das debêntures. O yield spread foi controlado por até dez outras variáveis determinantes que não a liquidez (fator de juros, fator de crédito, taxa livre de risco, rating, duration, quatro variáveis contábeis e volatilidade de equity). A hipótese nula de que não há prêmio de liquidez para o mercado secundário de debêntures no Brasil foi rejeitada apenas para três das sete proxies (spread de compra e venda, valor nominal de emissão e quantidade emitida). Os prêmios encontrados são bastante baixos (1,9 basis point para cada 100 basis point de incremento no spread de compra e venda, 0,5 basis point para um aumento de 1% no valor do valor nominal de emissão e 0,17 basis point para cada menos 1.000 debêntures emitidas). De qualquer forma, houve perda na eficiência das proxies de liquidez após correção das autocorrelações e potenciais endogeneidades, seja por meio da inclusão de efeitos fixos, da análise de primeiras diferenças ou da utilização de um sistema de três equações. Esses resultados apontam para a suspeita de que o risco de liquidez não é um fator importante na composição das expectativas dos investidores no mercado secundário de debêntures.En este estudio se tuvo como objetivo identificar el impacto del riesgo de liquidez en los rendimientos en exceso esperados de las obligaciones en el mercado secundario brasileño. Se realizaron análisis de regresión con datos de panel desbalanceado de 101 obligaciones durante ocho semestres (del primero semestre de 2006 al segundo semestre de 2009), con un total de 382 observaciones. Se utilizaron siete proxies (spread de compra y venta, %cero returns, edad, volumen de emisión, valor nominal de emisión, cantidad emitida y %tiempo) para evaluar el impacto del riesgo de liquidez en los rendimientos de las obligaciones. El diferencial de rendimiento fue controlado por hasta diez otras variables determinantes a excepción de la liquidez (interés, riesgo crédito, tasa libre de riesgo, rating, duration, cuatro variables contables y equity volatility). La hipótesis nula de que no existe una prima de liquidez para el mercado secundario de obligaciones en Brasil fue rechazada sólo para tres de los siete proxies (spread de compra y venta, valor nominal de emisión y cantidad emitida). Los premios encontrados son muy bajos (1,9 basis point para cada 100 basis point de aumento del spread de compra y venta, 0,5 basis point a un aumento del 1% en el valor nominal de emisión y 0,17 basis point para al menos 1000 debentures emitidos). De todos modos hubo una pérdida en la eficiencia de los proxies de liquidez después de la corrección de las autocorrelaciones y potenciales endogeneidades, ya sea por medio de la inclusión de efectos fijos, del análisis de las primeras diferencias o del uso de un sistema de tres ecuaciones. Estos resultados apuntan hacia la sospecha de que el riesgo de liquidez no es un factor importante en la composición de las expectativas de los inversores en el mercado secundario de bonos.This study aims to identify the impact of liquidity risk on expected excess returns of Brazilian corporate bonds in the secondary market. We performed a battery of regression analysis with semiannual unbalanced panel data for 101 securities over eight semesters (first semester of 2006 to the second half of 2009), totaling 382 observations. Seven proxies (bid/ask spread, %zeroreturns, age, amount outstanding, face value, number of bonds, and %time) were used to test the impact of liquidity risk in the yield spreads. Ten other variables (Slope Factor, Credit Risk Factor, risk-free rate, rating, duration, four accounting variables, and equity volatility) were used as yield spread determinants. The null hypothesis that there is no liquidity premium for bonds in the Brazilian secondary market was rejected for only three proxies (bid/ask spread, face value, and number of bonds). The premiums observed were quite small (1.9 basis points for each 100-basis-point increase in the bid/ask spread, 0.5 basis point to 1% face value increase, and 0.17 basis point for each issue of at least 1000 bonds). In both cases we observed a loss of efficiency of liquidity proxies following correction for autocorrelations and potential endogeneity, either through the inclusion of fixed effects, first differences analysis, or simultaneous equation analysis. These results point to the fact that liquidity risks may not be of great importance to the expectations of the Brazilian corporate bond secondary market.

This paper studies the extent to which access to domestic and international bond markets and syndicated loan markets and switches across them impact corporate debt maturity. Using world issuance activity during 1991-2014, the paper shows that different markets provide financing at different terms and that the importance of each market varies over time. Thus, the type of debt issued and its composition affect corporate maturity. During the global financial crisis of 2008-09, firms issued more bonds and, in developing countries, also more domestic loans. Because these markets are of longer maturity, the substitution across them allowed the largest firms that switched markets to maintain their average borrowing maturity, even when the maturity within each market declined for switchers and non-switchers. This evidence suggests that firms use different debt markets as complements and substitutes, and that compositional effects across firms and markets have a material impact on firm-specific and aggregate maturity.

This paper documents how firms in Arab countries issue equity, corporate bonds, and syndicated loans in domestic and international markets to obtain financing and grow. Using a new data set on issuance activity and firm performance, the paper finds that capital raising through these markets has grown rapidly since the early 1990s and involved an increasing number of issuing firms. Whereas the amounts raised (relative to gross domestic product) in equity and loan markets stand well with respect to international standards, bond issuance activity lags behind. Yet, bond financing has gained importance over time. Equity issuances primarily take place domestically, while bonds and loans are mostly issued internationally, display long maturities, and entail low levels of credit risk. Issuing firms are larger, grow faster, and are more leveraged than non-issuers. While issuers tend to be larger ex ante than non-issuers, the size gap between them seems to widen over time.

Korporacijske obveznice se dužnički vrijednosni papiri koje najčešće izdaju velike i uspješne kompanije u svrhu prikupljanja potrebnih financijskih sredstava. Investitorima koji se odluče da potrebna financijska sredstva prikupe putem izdavanja korporacijskih obveznica a ne putem kredita, dobit će kapital na raspolaganje po nižim kamatnim stopama nego što je to slučaj kod kredita. Danas na tržištu postoje tri glavne i osnovne vrste korporacijskih obveznica: osigurane, neosigurane i špekulativne. Hrvatsko tržište korporacijskih obveznica se počelo razvijati 2002. godine kada je tvrtka Belišće d.d. izdala prvu hrvatsku korporacijsku obveznicu. Zbog visokih troškova posredovanja brokera, i provizija burzi do te godine se obveznicama nije previše trgovalo. Danas je na zagrebačkoj burzi trinaest poduzeća uvrstilo svoja izdanja korporacijskih obveznica, međutim zbog slabe zainteresiranosti investitora nekima od njih se još uvijek nije trgovalo. U usporedbi s hrvatskim tržištem njemačko tržište korporacijskih obveznica je mnogo veće i aktivnije. Omjer financiranja putem obveznica i kredita u njemačkoj je 50:50, a prodaja korporacijskih obveznica raste iz godine u godinu. U istraživačkom dijelu diplomskog rada za izračun osnovnih parametara cijene, trajanje i prinosa su uzete u obzir dvanaest korporacijskih obveznica sa zagrebačke burze i proizvoljno odabranih dvanaest korporacijskih obveznica sa frankfurtske burze. U ovom diplomskom radu navode tri glavna pokazatelja obveznica a to su cijena, trajanje i prinos. Ono što je bitno naglasiti je da njemačke korporacijske obveznice nakon analize dobivenih rezultat imaju kraće trajanje. U konačnici dobiveni rezultati su pokazali da se investitorima više isplati usmjeriti svoje investicije prema njemačkim korporacijskim obveznicama, da je njemačko tržište mnogo više aktivnije nego hrvatsko, da se prodaja korporacijskih obveznica povećava iz godine u godinu u njemačkoj te da se u njemačkoj financiranje putem izdavanja korporacijskih obveznica približilo kreditnom načinu financiranja. Corporate bonds are debt securities that are issued usually large and successful companies in order to raise the necessary funds. Investors who decide to raise the necessary funds by issuing corporate bonds rather than through loans, will be capital available at lower interest rates than is the case with loans. Today on the market there are three main and basic types of corporate bonds: secured, unsecured and speculative. Croatian market corporate bonds began to develop in 2002 when the company Belišće d.d. issued the first Croatian corporate bonds. Due to the high cost of mediation brokers, and commission to exchange this year is not too bonds traded. Today at the Zagreb Stock Exchange thirteen companies ranked their corporate bond issues, but due to poor investor interest some of them are still not traded. Compared with the Croatian market German market of corporate bonds is much larger and more active. The ratio of financing through bonds and loans in Germany is 50:50, and the sale of corporate bonds is growing from year to year. In the research part of thesis in the basic parameters of cost, duration and yield are taken into account twelve corporate bonds with the Zagreb Stock Exchange and arbitrarily selected twelve of corporate bonds with the Frankfurt Stock Exchange. This thesis cite three main indicators of bonds such as price, duration and yield. What is important to emphasize that the German corporate bonds after the analysis of the obtained results in a shorter duration. Ultimately, the results showed that investors more profitable to direct their investments towards German corporate bonds to the German market much more actively than Croatian, that the sale of corporate bonds increases from year to year in Germany and in the German financing by issuing corporate bonds closer to credit the source.

У статті досліджені ряд теоретико-методологічних та прикладних положень щодо використання боргових інструментів у фінансуванні компаній. Узагальненні теоретичні основи механізму залучення зовнішніх запозичень на фінансовому ринку України. Систематизовані основні характеристики інструментів боргового фінансування, що застосовуються в процесі прийняття рішення щодо інвестування, зокрема банківських кредитів, корпоративних облігацій і лізингу. Виявлені особливості використання боргових інструментів на вітчизняному ринку та уточнено практичні рекомендації щодо їх застосування за сучасного стану економіки. Досліджено методи боргового фінансування, використовувані українськими компаніями. Здійснено порівняння джерел фінансування для компаній-емітентів на вітчизняному фондовому ринку. Розглянуто особливості функціонування сегменту корпоративних облігацій на ФБ ПФТC. Досліджено найбільші за розмірами випуски облігацій підприємствами реального сектору, які відбулися у 2014 році. Було проаналізовано високодохідні корпоративні облігації великих українських компаній та були визначені основні причини значного відхилення значень купону та дохідності до погашення для кожного емітента. На основі даних про емісії облігацій банків на ФБ ПФТС у 2014 році було зроблено висновки про роль фінансових установ на організованому ринку, зокрема ПФТС. In the paper there was explored the number of significant theoretic, methodological and practical issues associated with using debt to fund companies. There were generalized the theoretical foundations the external borrowing mechanism in the financial market of Ukraine. The main characteristics of debt financing instruments used in making investment decisions including bank loans, corporate bonds and leasing were systematized. The features of using the debt instruments in the domestic market have been revealed and the practical recommendations of their application looking back on an economy situation were refined. The methods of debt financing, used by Ukrainian companies were analyzed. There is given a comparison of sources of financing for the issuing companies in the domestic stock market. The features of operation segment of corporate bonds FB PFTC were considered. There were analyzed the high-yield corporate bonds of major Ukrainian companies and the main reasons of a significant values deviation for each issuer’s coupon and yield to maturity were determined. Based on the issue of banks' bonds PFTS Stock Exchange in 2014 there was concluded on the role of financial institutions in the organized market, in particular the PFTS. В статье исследованы ряд теоретико-методологических и прикладных положений по использованию долговых инструментов в финансировании компаний. Обобщены теоретические основы механизма привлечения внешних заимствований на финансовом рынке Украины. Систематизированы основные характеристики инструментов долгового финансирования, применяемые в процессе принятия решения по инвестированию в частности банковских кредитов, корпоративных облигаций и лизинга. Выявлены особенности использования долговых инструментов на отечественном рынке и уточнены практические рекомендации к их применению в условиях украинской экономики. Исследованы методы долгового финансирования, которые используют украинские компании. Проведено сравнение источников финансирования для компаний-эмитентов на отечественном фондовом рынке. Рассмотрены особенности функционирования сегмента корпоративных облигаций на ФБ ПФТC. Исследованы самые большие по размерам выпуски облигаций предприятиями реального сектора, которые состоялись в 2014 году. Были проанализированы высокодоходные корпоративные облигации крупных украинских компаний и определены основные причины значительного отклонения значений купона и доходности к погашению для каждого эмитента. На основе данных об эмиссии облигаций банков на ФБ ПФТС в 2014 году были сделаны выводы о роли финансовых учреждений на организованном рынке, в частности ПФТС.

Real estate companies are capital intense and bank loans represent the most common source of funding. However, the years following the latest financial crisis resulted in difficult terms and expensive bank loans, which cleared a path for alternative sources of funding. Small and me-dium-sized real estate companies displayed a particular interest in corporate bonds and ever since then the real estate sector have been overrepresented on the Swedish corporate bond mar-ket. Despite the growth during the past years, the Swedish market still appears to be underde-veloped compared to other countries. However, several trends are now indicating that High Yield is on the rise. New regulations that are currently being implemented will increase the costs for banks further and consequently make bank loans even more expensive. Simultane-ously, the current low interest-rate environment and volatile stock markets are increasing de-mand for High Yield alternatives among retail and institutional investors. This study investi-gates the High Yield market for small and medium-sized real estate companies and is built upon eleven interviews with professionals. It concludes that the market is underdeveloped because there has been no previous demand for it. Swedish banks and companies have traditionally had a synergetic relationship while investors relied on saving accounts and equities. The situation today is different; investors are demanding High Yield investments and the segment will most probably increase in the future. Real estate companies are positive to bonds and wish to increase the current ratio of their debt portfolio. There are however several barriers for continued growth, such as lack of knowledge, transparency, liquidity as well as fair pricing in the market. In the current state, corporate bond investments are suitable only for professional investors. The ex-emption is High Net Worth Individuals, who buy and hold, which are particularly suited for smaller corporate bonds. Fastighetsföretag bedriver kapitalintensiv verksamhet och den vanligaste finansieringsformen för svenska fastighetsföretag är idag banklån. Efter den senaste finanskrisen har dock bankut-låningen blivit mer restriktiv vilket särskilt har drabbat mindre företag. Till följd av detta har alternativa finansieringsformer blivit allt vanligare där företagsobligationer blivit särskilt in-tressanta för små och medelstora fastighetsföretag. Sedan finanskrisen har specifikt fastighets-företagen varit överrepresenterade på den svenska företagsobligationsmarknaden. Faktum är ändock att företagsobligationsmarknaden i Sverige, trots tillväxt de senaste åren, framstår som underutvecklad i jämförelse med andra länder. Flertalet trender pekar emellertid på att den kom-mer att fortsätta blomma ut. För närvarande implementeras nya regelverk som ökar kostnaderna för bankerna och potentiellt kommer att leda till större restriktioner och dyrare banklån. Vidare bidrar dagens låga ränteläge i kombination med volatila aktiemarknader till att efterfrågan på företagsobligationer bland investerare, privata såväl som institutionella, ökar. Studien undersö-ker företagsobligationsmarknaden inom High Yield segmentet för små och medelstora fastig-hetsföretag och bygger på elva intervjuer med yrkesverksamma. Det konkluderas att marknaden är underutvecklad då den ej har efterfrågats tidigare. De svenska bankerna och fastighetsföre-tagen har sedan länge en symbiotisk relation samtidigt som investerare har förlitat sig på spar-konton och aktier. Idag är situationen annorlunda där fler investerare efterfrågar High Yield produkter. Fastighetsföretagen är positiva till obligationer och önskar öka nuvarande andel i sina skuldportföljer. Det finns dock barriärer för den fortsatta tillväxten på marknaden, där-ibland brist på kunskap, transparens och likviditet samt ifrågasatt prissättning. Direktinveste-ringar i företagsobligationer idag lämpar sig därför för professionella investerare. Undantaget är kapitalstarka privatpersoner som ämnar att hålla instrumentet till förfall vilka lämpar sig sär-skilt bra som investerare i mindre företagsobligationer.

This paper examines market liquidity in the post-crisis era, in light of concerns that regulatory changes might have reduced banks' ability and willingness to make markets. We begin with a discussion of the broader trading environment, including a discussion of regulations and their potential effect on dealer balance sheets and market making, but also considering plausible alternative drivers of market liquidity. Using both high- and low-frequency data on U.S. Treasury securities and corporate bonds, we then investigate empirically whether liquidity has in fact deteriorated, and we review market behavior around three key post-crisis events. Overall, our findings, and those of recent papers we survey, do not suggest a significant decline in bond market liquidity. We conclude with ideas for future research, including the evaluation of additional data, methodological improvements, and closer analyses of liquidity risk and the interplay between market liquidity and funding liquidity.

Real estate companies are capital intense and bank loans represent the most common source of funding. However, the years following the latest financial crisis resulted in difficult terms and expensive bank loans, which cleared a path for alternative sources of funding. Small and me-dium-sized real estate companies displayed a particular interest in corporate bonds and ever since then the real estate sector have been overrepresented on the Swedish corporate bond mar-ket. Despite the growth during the past years, the Swedish market still appears to be underde-veloped compared to other countries. However, several trends are now indicating that High Yield is on the rise. New regulations that are currently being implemented will increase the costs for banks further and consequently make bank loans even more expensive. Simultane-ously, the current low interest-rate environment and volatile stock markets are increasing de-mand for High Yield alternatives among retail and institutional investors. This study investi-gates the High Yield market for small and medium-sized real estate companies and is built upon eleven interviews with professionals. It concludes that the market is underdeveloped because there has been no previous demand for it. Swedish banks and companies have traditionally had a synergetic relationship while investors relied on saving accounts and equities. The situation today is different; investors are demanding High Yield investments and the segment will most probably increase in the future. Real estate companies are positive to bonds and wish to increase the current ratio of their debt portfolio. There are however several barriers for continued growth, such as lack of knowledge, transparency, liquidity as well as fair pricing in the market. In the current state, corporate bond investments are suitable only for professional investors. The ex-emption is High Net Worth Individuals, who buy and hold, which are particularly suited for smaller corporate bonds. Fastighetsföretag bedriver kapitalintensiv verksamhet och den vanligaste finansieringsformen för svenska fastighetsföretag är idag banklån. Efter den senaste finanskrisen har dock bankut-låningen blivit mer restriktiv vilket särskilt har drabbat mindre företag. Till följd av detta har alternativa finansieringsformer blivit allt vanligare där företagsobligationer blivit särskilt in-tressanta för små och medelstora fastighetsföretag. Sedan finanskrisen har specifikt fastighets-företagen varit överrepresenterade på den svenska företagsobligationsmarknaden. Faktum är ändock att företagsobligationsmarknaden i Sverige, trots tillväxt de senaste åren, framstår som underutvecklad i jämförelse med andra länder. Flertalet trender pekar emellertid på att den kom-mer att fortsätta blomma ut. För närvarande implementeras nya regelverk som ökar kostnaderna för bankerna och potentiellt kommer att leda till större restriktioner och dyrare banklån. Vidare bidrar dagens låga ränteläge i kombination med volatila aktiemarknader till att efterfrågan på företagsobligationer bland investerare, privata såväl som institutionella, ökar. Studien undersö-ker företagsobligationsmarknaden inom High Yield segmentet för små och medelstora fastig-hetsföretag och bygger på elva intervjuer med yrkesverksamma. Det konkluderas att marknaden är underutvecklad då den ej har efterfrågats tidigare. De svenska bankerna och fastighetsföre-tagen har sedan länge en symbiotisk relation samtidigt som investerare har förlitat sig på spar-konton och aktier. Idag är situationen annorlunda där fler investerare efterfrågar High Yield produkter. Fastighetsföretagen är positiva till obligationer och önskar öka nuvarande andel i sina skuldportföljer. Det finns dock barriärer för den fortsatta tillväxten på marknaden, där-ibland brist på kunskap, transparens och likviditet samt ifrågasatt prissättning. Direktinveste-ringar i företagsobligationer idag lämpar sig därför för professionella investerare. Undantaget är kapitalstarka privatpersoner som ämnar att hålla instrumentet till förfall vilka lämpar sig sär-skilt bra som investerare i mindre företagsobligationer.