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This paper provides a comparative analysis of project finance (PF) and traditional corporate finance (CF) bond spreads and pricing. Using a cross-section of 47,196 bonds issued worldwide in the 1993–2020 period, we show that PF and CF bonds are differently priced, PF bonds have higher spreads than comparable CF bonds, and although ratings are the most important pricing determinant for PF and CF bonds at issuance, investors rely on other contractual, macroeconomic, and firms' characteristics beyond these ratings. Our results do not support the hypothesis of PF transactions as mechanisms of reducing sponsoring firms' funding costs: the cost of borrowing affects financing choices and PF transactions' weighted average spread is higher than that of comparable CF bond deals. We also find that economies of scale, risk management, and information asymmetry arguments affect sponsoring firms' choice between PF and CF transactions.

This paper provides a comparative analysis of project finance (PF) and traditional corporate finance (CF) bond spreads and pricing. Using a cross-section of 47,196 bonds issued worldwide in the 1993–2020 period, we show that PF and CF bonds are differently priced, PF bonds have higher spreads than comparable CF bonds, and although ratings are the most important pricing determinant for PF and CF bonds at issuance, investors rely on other contractual, macroeconomic, and firms' characteristics beyond these ratings. Our results do not support the hypothesis of PF transactions as mechanisms of reducing sponsoring firms' funding costs: the cost of borrowing affects financing choices and PF transactions' weighted average spread is higher than that of comparable CF bond deals. We also find that economies of scale, risk management, and information asymmetry arguments affect sponsoring firms' choice between PF and CF transactions.

Строительная отрасль представляет собой одну из важнейших отраслей российской экономики, которая в совокупности со сферой жилищно-коммунального хозяйства занимает сегодня порядка 10 % ВВП страны. Развитие строительной отрасли в России имеет уже достаточно продолжительную историю, однако до сих пор можно наблюдать различного рода трансформационные процессы, протекающие в данном секторе экономики. Состояние рынка динамично меняется в зависимости от складывающихся социально-экономических условий, правового регулирования и мер по государственной поддержке отрасли, а также геополитической обстановки в мире. Вместе с тем обеспечение стабильности функционирования предприятий строительной отрасли представляет собой важнейшую задачу, стоящую перед любым государством, решение которой может способствовать обеспечению жильем населения страны, возведению новых и реконструкции старых объектов социальной и транспортной инфраструктуры и пр. В связи с этим актуальными для исследования становятся не только вопросы государственного регулирования компаний строительной отрасли, но и те финансовые механизмы, которые реализует каждый отдельный субъект рынка для обеспечения своей устойчивости и развития. Именно поэтому анализ структуры капитала, оценка долговых источников финансирования отдельных компаний, выявление инвестиционного потенциала субъектов рынка строительной отрасли представляют особый интерес для изучения. В данной статье анализируются причины привлечения заемных денежных средств в строительную отрасль, рассматриваются источники финансирования строительства, среди которых особое место отводится банковскому кредитованию и выпуску облигаций. Внимание акцентируется на изучении облигационных займов как наиболее перспективном и эффективном инструменте привлечения инвестиций предприятиями строительной отрасли. На основе анализа статистических данных и мнений экспертов отрасли делается вывод о преимуществах выпуска собственных облигаций строительными компаниями перед банковским кредитованием и о перспективах их более широкого применения в российской практике., The construction industry is one of the most important branches of the Russian economy, which together with the housing and communal services sector occupies about 10 % of the country’s GDP today. The development of the construction industry in Russia has already had a fairly long history, but it is still possible to observe various kinds of transformational processes taking place in this sector of the economy. The state of the market is changing dynamically depending on the prevailing socio-economic conditions, legal regulation and government support for the industry, as well as the geopolitical situation in the world. At the same time, ensuring the stability of the functioning of enterprises in the construction field is the most important task facing any country, the solution of which can contribute to the provision of housing for the population, the construction of new and reconstruction of old social and transport infrastructure facilities, etc. In this regard, not only the issues of state regulation of companies in the construction industry become relevant for the study, but also those financial mechanisms that each individual market entity implements to ensure its sustainability and development. That is why the analysis of the capitalstructure, the assessment of debt sources of financing of individual companies, the identification of the investment potential of the subjects of the construction industry market are of particular interest to study. This article analyzes the reasons for attracting borrowed funds to the construction industry, examines the sources of construction financing, among which a special place is given to bank lending and bond issuance. Attention is focused on the study of bond loans as the most promising and effective instrument for attracting investments by enterprises of the construction industry. Based on the analysis of statistical data and expert opinions, a conclusion is made about the advantages of issuing their own bonds by construction companies over bank lending and about the prospects for their wider application in Russian practice., Бизнес. Образование. Право, Выпуск 1 (62) 2023, Pages 1-7

Equity markets are amongst the most researched areas in asset pricing literature. Data availability and the liquid and transparent nature of equity markets have aided research in this domain. The research on corporate bond markets is considerably less due to both the illiquid and over-the-counter (OTC) nature of these markets which have resulted in less easy availability of reliable data sources. Corporate bond and equities possess commonalities in their behaviour largely because of being at different points in the capital structure of firms. Indeed, adverse news for a company should adversely affect the pricing of both the firm’s equity and debt. As a result, practitioners often consider corporate bonds as a combination of government-bonds and beta-adjusted equities used as a proxy for credit exposure. In the thesis however, we seek to demonstrate that credit risk, although highly correlated in the short term, can be different from equity risk. The seminal work on the pricing of corporate debt was by Robert Merton (Merton 1974). The Merton model represented corporate debt as the combination of a risk-free asset and a short position in a put option on the assets of the firm. Equity was represented as a long call option on the assets of the firm. Since then models such as Black and Cox (1976) and Leland (1994) have extended the Merton model but the key features of corporate bond pricing and its co-movement with equity prices are still well represented by the Merton model. The Merton model, while capturing a point of commonality – the common effect of changes in asset prices to equity and debt price – and a key difference – the left-tailed nature of corporate debt returns – does not address other key areas of differences between the two asset classes. One area of difference, studied extensively in the empirical literature, but not in structural models is the significant difference in liquidity and trading dynamics between the two markets. Another key area of difference between the two markets comes from the differing type of investors. Regulations, which are much more onerous for corporate debt than equities, can lead to non-market-driven behaviour such as a significant aversion to downgrades. The goal of my PhD thesis is to study the commonality and differences between these two asset classes and Its implication on the cross-section of corporate bond returns. Specifically, we look at three aspects of differences between corporate and equities. The first chapter focuses on the issuance of corporate bonds and contrasts with equity issuance. It starts with the issuance process and analyses the new issue premiums in corporate bonds contrasting it with results seen in equity initial public offerings (IPOs). This chapter also analyses the determinants of corporate bond issuance concessions. The second chapter looks at the short-term commonalities and differences between the performance patterns of corporate bonds and equities. This chapter merges two distinct branches of literature on structural credit models and commonalities in corporate bond-equity behaviour with that of cross-asset momentum. The last two chapters focus on the topical area of exchange traded funds and their dislocations, as measured by the significant deviations between prices and net-asset-values (NAV), seen in this market during the extreme volatility at the peak of the Covid-19 crisis in March 2020. Specifically in chapter 4, we study the dislocation in fixed-income and specifically corporate bond ETFs and contrast it with the relatively better-behaved equity ETFs. We show that this relative dislocation is not just from liquidity differences and that the ETF price may have been an over-reaction. In chapter 5, we build a model for ETF arbitrage specifically taking into account incentives of the arbitrageurs, a critical difference between fixed income and equity ETFs. We show that inventory management by dual market makers and arbitrageurs may have exacerbated the dislocation.

This paper aims to examine the connectedness between green and conventional assets, particularly during the period of economic downturn. Specifically, we examine quantile-based time-varying connectedness between the green bond market and other financial assets using quantile vector autoregression (QVAR) from 9 March 2018 to 10 March 2021. We use daily prices of S&P U.S. Treasury Bond Index, S&P US Aggregate Bond Index, S&P US Treasury Bond Current 10Y Index, S&P 500 Bond Index, S&P 500 Financials index, S&P 500 Energy Bond Index and S&P 500, giving a total of 784 observations, and using Composite Index as a representative of conventional assets classes and S&P Green Bond Index to denote the green bond market. Results shows the connectedness between green bonds and the conventional asset classes intensified during the outbreak of the Coronavirus pandemic (COVID-19) as investors shifted their investment towards fixed income assets due to the plunge in the prices of stocks and commodities. The results also shows that green bonds are strongly connected with treasury bonds, aggregate bonds and bond index, as they share similarities with respect to issuance, risk and governance. Connectedness is weak in the case of composite index and energy bond index, as their prices do not have substantial influence on the green bond market. The study highlights the hedging and diversification benefits of green bonds. We have several implications for portfolio managers, policy makers and researchers.

In der ersten Arbeit analysiere ich die Renditen von Fallen Angel-Anleihen vor und nach ihrer Herabstufung zu hochverzinslichen Anleihen. Fallen Angel-Anleihen verzeichnen einen starken Kursrückgang vor und eine deutliche Erholung nach der Ankündigung der Herabstufung durch die Ratingagentur. Ich führe eine neue Benchmark ein, die den Preis von Fallen Angel-Anleihen besser widerspiegeln sollte, wenn sie nicht vor ihrer Herabstufung einen Ausverkauf erlebt hätten. Auf diese Weise kann ich den gesamten Ausverkauf vor der Bekanntgabe der Herabstufung schätzen und auf dieser Grundlage entscheiden, welche Fallen Angel-Anleihen nach ihrer Herabstufung gekauft werden sollten. Es besteht ein starker negativer Zusammenhang zwischen dem Ausmass des Ausverkaufs vor der Herabstufung und den zukünftigen Renditen nach der Herabstufung. Ich kann dann zeigen, dass ein Investor höhere Renditen erzielen kann, wenn er nur Fallen Angel-Anleihen kauft, die mit einem Abschlag zu ihrer jeweiligen geschätzten Benchmark-Rendite gehandelt werden. Im Vergleich zu bisherigen Methoden aus der Literatur, kann ein Anleger mit der eingeführten innovativen, datengestützten, neuartigen Benchmark höhere Renditen erzielen. Diese Outperformance wird umso deutlicher, je mehr man sich auf die Fallen Angel-Anleihen konzentriert, die vor der Ankündigung den grössten Ausverkauf erlebt haben. In der zweiten Arbeit untersuchen wir den Querschnitt von Unternehmensanleihen, indem wir einen grossen Datensatz von Jahresabschluss-, Aktien-und Anleihenmerkmalen verwenden. Wir verwenden einen prädiktiven Regressionsrahmen und das adaptive Lasso, um die wichtigsten Merkmale für den Querschnitt der Unternehmensanleihen auszuwählen. Bei Anwendung des adaptiven Lasso auf den gesamten Datensatz ergibt sich ein Zehn-Faktoren-Modell, wobei Value, Bond Reversal und Equity Momentum Spillover die dominierenden Faktoren sind. Im Gegensatz zu Aktienstudien scheinen Finanzvariablen aus Compustat keine grosse Aussagekraft bei der Vorhersage von Unternehmensanleihenrenditen zu haben. Wir validieren unsere ersten Ergebnisse, indem wir eine Out-of-Sample-Untersuchung mit einem Expanding-Window-Ansatz durchführen. Von den 60 Monaten, die in der Out-of-Sample-Stichprobe verwendet wurden, wählt das adaptive Lasso konsistent Value-, Bond-Reversal- und Equity-Momentum-Spillover aus. Abschliessend bewerten wir den wirtschaftlichen Nutzen von Investitionen gemäss den Vorhersagen des adaptiven Lassos und stellen fest, dass sie in Bezug auf die absoluten und risikobereinigten Renditen erhebliche Vorteile bieten. In der dritten Arbeit wird die Fähigkeit der Manager von Unternehmensanleihenfonds, Alpha zu generieren, bewertet. Wir wenden die False Discovery Rate (FDR) an, um zwischen Können und Glück zu unterscheiden. Wir stellen fest, dass eine langfristige Outperformance schwer zu erreichen ist, da nur 1% der Fonds in der Lage ist, während ihrer Laufzeit ein signifikantes Alpha zu erzielen. Allerdings sind die Fondsmanager in der Lage, kurzfristig Alpha zu generieren, wobei der Anteil der Können Fonds auf 13,5% steigt, wenn wir dreijährige Teilperioden untersuchen. Um diese Ergebnisse zu validieren, entwerfen wir eine Out-of-Sample-Anlagestrategie, bei der wir in Fonds entsprechend ihrem geschätzten Können investieren. Unsere Strategie generiert ein positives und signifikantes Alpha, was die Persistenz der Outperformance im kurzfristigen Bereich bestätigt. Unsere Ergebnisse sind für Anleger von wirtschaftlicher Bedeutung und deuten darauf hin, dass sich eine dynamische und aktive Managerauswahl auszahlt., In the first paper, I analyze fallen angel bonds' returns before and after their downgrade to high-yield. Fallen angel bonds experience a sharp price decline prior and a sharp recovery after the rerating announcement by the rating agency. I introduce a novel benchmark that should more closely mirror the price fallen angel bonds would have had, had they not experienced a fire sale prior to their downgrade. This allows me to estimate the total preannouncement sell-off and I then use this in order to decide on which fallen angel bonds should be bought after their downgrade. There exists a strong negative relationship between the size of the preannouncement sell-off and future postannouncement returns. I can then show, that an investor fares better, if only fallen angels are bought that trade at a discount to their respective estimated benchmark return had they not experienced the sell-off. Using the introduced innovative, data-driven, novel benchmark allows an investor to generate higher returns. This outperformance gets more pronounced as one focuses on the fallen angel bonds that experienced the highest preannouncement sell-off. In the second paper, we study the cross-section of corporate bonds utilizing a large set of financial statements, equity and bond characteristics. We use a predictive regression framework and the adaptive Lasso to choose the most relevant characteristics for the cross-section of corporate bonds. Applying the adaptive Lasso to the full dataset, we find a ten-factor model, with value, bond reversal, and equity momentum spillover being the dominant factors. Contrary to equity studies, financial variables from Compustat do not appear to have strong power in predicting corporate bond returns. We validate our initial results by running an out-of-sample exercise using an expanding window approach. Out of the 60 months utilized in the out-of-sample, the adaptive Lasso consistently chooses value, bond reversal, and equity momentum spillover. Finally, we evaluate the economic benefits of investing according to the predictions of the adaptive Lasso and find significant benefits in terms of absolute and risk-adjusted returns. In the third paper, we evaluate the ability of U.S. corporate bond fund managers to generate alpha. We apply the False Discovery Rate (FDR) to distinguish between «skill» and «luck.» We find that long-term outperformance remains elusive, with only 1% of the funds able to generate significant alpha over their life. However, fund managers are able to generate alpha over the short-term with the proportion of skilled funds increasing to 13.5% when we examine three-year sub-periods. To confirm these findings, we design an out-of-sample investment strategy where we invest in funds according to their estimated «skill» from past returns. Our strategy generates positive and significant alpha, which confirms the persistence in outperformance over the short-run. Our results are economically meaningful for investors suggesting that dynamic and active manager selection pays off.

This dissertation consists of three essays on empirical asset pricing. In the first paper, we examine the impact of test criteria in identifying true asset pricing factors. We focus on the Sharpe ratio and pricing performance improvement. While both criteria are exposed to model misspecification, we find that pricing performance criteria are inferior as their performance is driven by estimation bias. Through an empirical application, we demonstrate the impact of the criteria on the subset of selected factors. In the second paper, we study the cross-section of corporate bonds by utilizing a large set of financial statements, equity and bond characteristics. We use a predictive regression framework and the adaptive Lasso to choose the most relevant characteristics. Applying the adaptive Lasso, we find a ten-factor model, with value, bond reversal, and equity momentum spillover being the dominant factors. We evaluate the economic benefits of investing according to the predictions of the adaptive Lasso and find significant benefits in terms of absolute and risk-adjusted returns. In the third paper, we evaluate the ability of U.S. corporate bond fund managers to generate alpha. We apply the False Discovery Rate (FDR) to distinguish between 'skill' and 'luck'. We find that long-term out-performance remains elusive, with only 1% of the funds able to generate significant alpha over their life. However, fund managers can generate alpha over the short-term, with the proportion of skilled funds increasing to 13.5% when we examine three-year sub-periods.

Viewing the development of the stock market in Ukraine, the economy, which world financial organizations characterize as small and open, is largely determined by the trends formed by the global stock markets and leading stock exchanges. Therefore, the study aims to analyze Ukraine’s stock market, the world stock market, stock markets in the regions, and to assess their mutual influence. The study uses the data of the World Federation of Exchanges and National Securities and Stock Market Commission (Ukraine) from 2015 to 2020. Stock market performance forecasts are built using triple exponential smoothing. Based on pairwise correlation coefficients, the existence of a significant dependence in the development of the world stock market on the development of the American stock market was determined. Regarding the Ukrainian stock exchanges, only SE “PFTS” demonstrated its dependence on the US stock market. The results of the regression model based on an exponentially smoothed series of trading volumes in all markets showed that variations in the volume of trading on the world stock market are due to the situation on the US stock markets. Trading volume dynamics on Ukrainian stock exchanges such as SE “PFTS” and SE “Perspektiva” is almost 50% determined by the development of stock markets in the American region. Although Ukraine is geographically located in Europe, the results show a lack of significant links and the impacts of stock markets in this region on the major Ukrainian stock exchanges and the stock market as a whole.

China’s bond market has been ranked third globally; however, China’s corporate bonds are significantly less liquid than its stocks. Liquidity risk is an important component in China’s corporate bond spreads. In this paper, we propose a stochastic liquidity discount factor model to evaluate the liquidity risk premium and its term structure in China’s corporate bond market. The Monte Carlo simulation technique is used to quantify the impact on the liquidity premium of various liquidity factors: the liquidity level, liquidity volatility, liquidity shock, and the liquidity elasticity. Our findings conclude that the liquidity level is the most significant component of a liquidity premium. The impact on the liquidity premium of other liquidity factors is all conditional on the liquidity level. In addition, the impact of liquidity shocks and volatility is also subject to the market’s equilibrium mechanism. Further, the term of a bond affects the premium both directly and indirectly through its influence on a bond’s liquidity.

I examine investors' within ESG investment preferences during the COVID‐19 pandemic by investigating the return spillover effects across the three different corporate bonds and equities‐based investment strategies. Investors prefer making investments in ESG leaders in the investment‐grade corporate bond market over ESG leaders in the equity and high yield corporate bond markets during times of uncertainty. It suggests that capital flows away from high yield corporate bond and equity markets to the investment‐grade corporate bond market. Investors find refuge in firms with relatively higher ESG ratings and creditworthiness in the fixed income market over the equity market during crisis periods.

This dissertation studies the unintended consequences of the Liquidity Risk Management Rule adopted by the SEC in 2016. The rule imposes an upper bound for illiquid assets and a lower bound for liquid assets in mutual fund portfolios. In response to the regulation, corporate bond mutual funds shift their portfolios toward liquid corporate bonds. The ownership shift to liquid corporate bonds increases the comovement among the underlying liquid assets, and higher comovement among liquid corporate bonds increases the volatility in liquid corporate bond funds. However, I find little evidence of stabilized fund flows. Overall, reducing fragility in mutual funds using portfolio constraints has unintended consequences.

We investigate whether a firm’s social capital and the trust that it engenders are viewed favorably by bondholders. Using firms’ environmental and social (E&S) performance to proxy for social capital, we find no relation between social capital and bond spreads over the period 2006–2019. However, during the 2008–2009 financial crisis, which represents a shock to trust and default risk, high-social-capital firms benefited from lower bond spreads. These effects are stronger for firms with higher expected agency costs of debt and firms whose E&S efforts are more salient. During the crisis, high-social-capital firms were also able to raise more debt, at lower spreads, and for longer maturities. We find no evidence that the governance element of ESG is related to bond spreads. The gap between E&S performance of firms in the bottom and top E&S terciles has narrowed since the financial crisis, especially in the year prior to accessing the bond market.

The average difference between the court value and post-emergence market value of newly issued stocks in Chapter 11 reorganizations exceeds 50%. We show that public dissemination of transactions in defaulted bonds reduces this difference by 23% and largely eliminates inter-claimant wealth transfers. The effects of dissemination are only significant when the bonds are sufficiently traded around the court valuation date, and when they receive significant amounts of post-emergence equity, indicating that the bond’s value is sensitive to the size and allocation of the pie. These findings imply that security prices have real effects: They improve the valuations of bankruptcy participants.

The subject of the study is the financial system and monetary regulation of the economy during the COVID-19 coronavirus pandemic. The purpose of the article is to investigate the monetary policy pursued by the national Central banks of developed countries in the context of the economic crisis caused by pandemic. The paper uses comparative analysis, a systematic approach to the study of information, as well as graphical and tabular methods. The author considers monetary policy instruments used by national Central banks of developed countries to mitigate the impact of the pandemic on the real sector of the economy. The study reveals distinctive features of anti-crisis measures of monetary regulation bodies.

The purpose of the paper is to analyze the process of the corporate bond market formation in Eastern Europe and to determine the prospects for development in Ukraine. Methodology. It is justified that the main variables that affect corporate bond issues are loans granted to financial corporations (excluding banks) and non-financial corporations, share issues and equity. The empirical basis of the study is the reports of the National Securities and Stock Market Commission (on the amount of shares and bonds), the National Bank of Ukraine (on the amount of loans to corporations) and the State Statistics Service of Ukraine (on the amount of corporate equity). The study covers 20 years: from 2000 to 2019. Based on these data, a vector autoregressive model (VAR) was constructed. The forecast error variance decomposition (VDC) technique was used to identify the most influential variables in the corporate bond issuance process. Based on the VAR model, the forecast levels of model variables for 2021–2024 were obtained, which should have been achieved under the condition of planned development of the corporate bond market in Ukraine. It has been suggested that the economic shock of the COVID-19 has led to a decrease in the expected level of variables in 2020. Therefore, seven scenarios for the development of the corporate bond market are considered: A – reduction of equity amount; B – decrease in the amount of shares issued; C – decrease in the amount of loans to corporations; A + B; A + C; B + C; A + B + C. The results of the VDC technique have allowed to establish that the issue of corporate bonds in Ukraine largely depends on the amount of bank loans granted to corporations. Based on the VAR model and scenario forecasting, it was determined that the most favorable for the development of the corporate bond market of Ukraine is the scenario, in which corporations’ equity will be reduced by 10% due to increased uncovered loss but such a reduction will not lead to liquidation, and hence the cessation of circulation of their shares. Practical implications. Forecasting the amount of corporate bonds, shares and loans to corporations based on the proposed model allows companies to develop effective strategic plans, and investors – to decide on the allocation of their own financial resources. Value/originality. The proposed model of corporate bond market development in Ukraine includes internal and external sources of financing of enterprises, and allows to quantify the relationship between financial instruments (corporate bonds, loans and shares).

This dissertation contains three essays on financial markets concerning the relationship between short interest and returns in over-the-counter (OTC) equities, the effect of obtaining a rating on municipal bond offering yields, and the use of alternative trading systems (ATS) in the corporate bond market.Chapter 1 studies short positions among over-the-counter domestic common stocks. Short selling plays an important role in maintaining price efficiency, but short-selling in over-the-counter equities is often perceived as extremely rare. Short selling constraints are indeed high in this market, with the median fee to borrow a security being 2% for stocks with no short interest and 10% for stocks with short interest exceeding 1% of shares outstanding. Despite these constraints, 27% of domestic OTC equities have outstanding short interest positions on a given reporting date. Consistent with theories of short selling constraints such as Miller (1977), these high short selling constraints imply a substantial negative relationship between short interest and future returns. A portfolio of securities with short interest exceeding 1% of shares underperforms a portfolio of securities with no short interest by 31% annually and panel regressions show the relationship is robust to accounting for other security characteristics. The negative relationship between short interest and future returns suggests short sellers are trading in the direction of correcting mispricing in the OTC market, but the large magnitude and long time horizon over which short positions outperform suggests that there are large potential price efficiency gains from reducing constraints on short selling. Chapter 2, joint work with Haluk Unal, studies how whether a municipal bond is rated affects its offering yield. Approximately 34% of local municipal bond issues were issued without ratings during 1998 to 2017. We study the circumstances that affect the decision to obtain a rating and whether unrated bonds, controlling for observable risk factors, are more expensive to issue than rated bonds. Results show that issuers are less likely to obtain ratings for smaller issues, negotiated offerings, and bonds with high proxies for risk such as coming from areas with low personal income. We estimate the effect of forgoing a rating on offering yields using a doubly-robust Inverse Probability Weighted Regression Adjustment that controls for confounding that arises from risk and other characteristics affecting both the choice to obtain a rating and the yield. We separately analyze revenue bonds, general obligation bonds, bank qualified, and non-bank qualified bonds and find ratings decrease offering yields by 47, 49, 60, and 42 basis points respectively. The higher offering yields cost municipalities $22.5B in higher interest expense during our sample period. We find the choice of issuers to forgo ratings despite the substantial potential savings appears to be influenced by the underwriters they work with. Underwriters may face a conflict of interest where not obtaining a rating lowers the price investors are willing to pay from the bond, but also lowers the price the underwriter must pay the issuer and thus increases the underwriter’s profit. Chapter 3 is joint work with Matthew Kozora, Bruce Mizrach, Or Shachar, and Jonathan Sokobin. This chapter studies the circumstances when corporate bonds trade via an electronic ATS rather than in the traditional phone market and the relationship between venue choice and transaction costs. Trades on ATS platforms are smaller and more likely to involve investment-grade bonds, suggesting market participants trade via ATS when concerns about information leakage and adverse selection are lower. Trades on ATS platforms are more probable for older, less actively traded bonds from smaller issues, indicating participants are more likely to trade via ATS when search costs are high. Moreover, dealer participation on ATS platforms is associated with lower customer transaction costs of between 24 and 32 basis points.

Цель работы – рассмотрение целесообразности и эффективности привлечения заемного капитала методом выпуска ÐºÐ¾Ñ€Ð¿Ð¾Ñ€Ð°Ñ‚Ð¸Ð²Ð½Ñ‹Ñ Ð¾Ð±Ð»Ð¸Ð³Ð°Ñ†Ð¸Ð¹. Объектом исследования в работе является непубличное акционерное общество ЗАО ЛИЗИНГОВАЯ КОМПАНИЯ «Роделен»; предметом – выпуск Ð±Ð¸Ñ€Ð¶ÐµÐ²Ñ‹Ñ ÐºÐ¾Ñ€Ð¿Ð¾Ñ€Ð°Ñ‚Ð¸Ð²Ð½Ñ‹Ñ Ð¾Ð±Ð»Ð¸Ð³Ð°Ñ†Ð¸Ð¹ как способ привлечения капитала для ЛК «Роделен». Для достижения поставленной цели были рассмотрены теоретические аспекты и различные способы привлечения заемного капитала, проведено сравнение облигационного и кредитного займа, найдены действующие программы государственной поддержки для субъектов МСП по обоим способам привлечения капитала, а также рассмотрен алгоритм Ð²Ñ‹Ñ Ð¾Ð´Ð° компании на биржу. Проведен анализ конкурентного положения ЛК «Роделен» на рынке Ð»Ð¸Ð·Ð¸Ð½Ð³Ð¾Ð²Ñ‹Ñ ÑƒÑÐ»ÑƒÐ³, при анализе финансовой отчетности ЛК «Роделен» выявлена большая доля Ð·Ð°ÐµÐ¼Ð½Ñ‹Ñ ÑÑ€ÐµÐ´ÑÑ‚Ð² в структуре финансирования деятельности, определена платежеспособность эмитента и Ð½ÐµÐ¾Ð±Ñ Ð¾Ð´Ð¸Ð¼Ð¾ÑÑ‚ÑŒ в привлечении дополнительного заимствования. Рассчитана ожидаемая рыночная Ð´Ð¾Ñ Ð¾Ð´Ð½Ð¾ÑÑ‚ÑŒ по второму облигационному выпуску ЛК «Роделен», проведено сопоставление ожидаемой и реальной Ð´Ð¾Ñ Ð¾Ð´Ð½Ð¾ÑÑ‚ÐµÐ¹. Оценены дополнительные затраты при организации выпуска облигаций и привлечении Ð´ÐµÐ½ÐµÐ¶Ð½Ñ‹Ñ ÑÑ€ÐµÐ´ÑÑ‚Ð² через банк, рассчитана реальная стоимость заимствования. Результатом работы является обоснование эффективности привлечения Ð·Ð°ÐµÐ¼Ð½Ñ‹Ñ ÑÑ€ÐµÐ´ÑÑ‚Ð² компанией через фондовый рынок методом выпуска ÐºÐ¾Ñ€Ð¿Ð¾Ñ€Ð°Ñ‚Ð¸Ð²Ð½Ñ‹Ñ Ð¾Ð±Ð»Ð¸Ð³Ð°Ñ†Ð¸Ð¹, а также предложение Ð´Ð°Ð»ÑŒÐ½ÐµÐ¹ÑˆÐ¸Ñ ÑÐ¿Ð¾ÑÐ¾Ð±Ð¾Ð² заимствований Ð´ÐµÐ½ÐµÐ¶Ð½Ñ‹Ñ ÑÑ€ÐµÐ´ÑÑ‚Ð² для эмитента., The purpose of the paper is to consider the expediency and efficiency of attracting borrowed capital by issuing corporate bonds. The object of the research is non-public joint stock company CJSC LEASING COMPANY "Rodelen"; the subject of the research is the issue of corporate bonds as a method of raising capital for LK "Rodelen". To achieve this goal, theoretical aspects, and various ways of raising borrowed capital were considered, a comparation of a bond loan and credit loan was made, existing government supports programs for SME subjects were found for both ways of raising capital, and the algorithm of the company’s entry into the stock exchange was considered. The analysis of the competitive position of LC “Rodelen” in the leasing services market was carried out; the analysis of the financial statements of LC "Rodelen" revealed a large share of borrowed funds in the structure of financing company’s operation. The solvency of the issuer and the need to attract additional borrowing was determined. In the paper the expected market yield of the second LC Rodelen bond issue was calculated, and a comparison of expected and real returns was carried out. The additional costs of organizing the issue of bonds and raising funds through the bank credits are estimated, the real costs of borrowing is calculated. The result of the research is to substantiate the effectiveness of raising borrowed capital by the company through the stock market by issuing corporate bonds, as well as suggesting further ways of borrowing funds for the issuer.

Using an aggregate credit spread index, we find that it has substantial predictive power for corporate bond returns over short and long horizons. The return predictability is economically and statistically significant and robust to various controls. The credit spread index and its components have more predictive power for bond returns than conventional default and term spreads. When decomposing the credit spread index into investment- and speculative-grade components, the latter has more predictive power for future bond returns. The source of the index&rsquo, s predictive power is from its ability to forecast future economic conditions.

We show that production networks are important for the transmission of unconventional monetary policy. Firms with bonds eligible for purchase under the European Central Bank���s Corporate Sector Purchase Program act as financial intermediaries by extending more trade credit to their customers. The increase in trade credit is more pronounced from core countries to periphery countries and for financially constrained customers. Customers increase investment and employment in response to the increase in trade financing, while suppliers expand their customer base, contributing to upstream industry concentration. Our findings suggest that trade credit redistributes the effects of monetary policy across regions and firms.

This study explores the possibility that cheep credit, provided to firms when profit opportunities on real investments are low, and when opportunities of financial investments are present, will loose some of it’s stimulus effect due to a crowding out effect of financial investments on real investments. Analyzing the changes in debt, and it’s channels of use during the recession of the covid19 pandemic, between firms with a history of stock buybacks, and firms without such a history, the study finds a significantly higher increase in debt for firms with a history of doing stock buybacks. The study concludes that this effect is due to firms finding financial uses of more cheap credit, which does crowd out real investments.

This paper documents that the bond investments of insurance companies transmit shocks from insurance markets to the real economy. Liquidity windfalls from household insurance purchases increase insurers' demand for corporate bonds. Exploiting the fact that insurers persistently invest in a small subset of firms for identification, I show that these increases in bond demand raise bond prices and lower firms' funding costs. In response, firms issue more bonds, especially when their bond underwriters are well connected with investors. Firms use the proceeds to raise investment rather than equity payouts. The results emphasize the significant impact of investor demand on firms' financing and investment activities.

The market for sustainable corporate bonds is booming and has been for the pastyears. Swedish real estate companies were first with issuing green corporate bonds andresponsible for the largest amount of issued corporate bonds. However, in the socialand sustainability corporate bond market, the sector is lagging. Why would companiesissue sustainable bonds instead of regular, as it involves more issuing costs and morerequirements? Are green bonds a less risky asset and why have not thesocial/sustainability corporate bond market boomed yet?A proven method is applied by a matching approach using Mahalanobis distance withfocus on green corporate bonds issued by Swedish real estate companies at NasdaqNordic’s sustainable debt list. We compare green and traditional bonds by mean andmedian using paired t-test and Wilcoxon test. Our results conclude that the premiumon green bonds amounts to an average of 13.0 basis points with a median value of 13.6basis points, both at the 1% significance level.Interviews are held with issuers, investors, banks, and rating institutes for a deeperunderstanding behind incentives and the sustainable bonds market. Most respondentsmean that a sustainable label is connected to a premium. Besides an economicincentive, most of the respondents mean that issuing sustainable bonds is a valuablesignaling element to show the market a company’s sustainable commitment.Respondents further say that social and sustainability bonds are lagging due to thelack of key performance indicators (KPIs), regulations, and that such engagementrequires too small investment volumes. With further regulations, the risk ofenvironmental, social, and governance (ESG) washing is minimized, and respondentsbelieve that greenwashing is particularly becoming rarer as the market is maturing.Finally, the respondents all believe in further growth in both green, social andsustainability bonds, but to varying degrees.Our results conclude that there are many incentives in adding the sustainability factorin the capital structure to reduce financial costs as well as improving (or maintaining)brand image. We hope our results can give further incentives to issue sustainable debtas well as bring a deeper understanding to the challenges slowing down thedevelopment of social and sustainability bonds. Marknaden för hållbara företagsobligationer blomstrar och har gjort det under desenaste åren. Svenska fastighetsbolag var först med att emittera grönaföretagsobligationer och står för den största utestående volymen av emitteradeföretagsobligationer. Däremot halkar sektorn efter när det kommer till sociala ochhållbarhetsobligationer. Varför skulle företag ge ut hållbara obligationer när detinnebär högre emissionskostnader och högre krav? Är gröna obligationer en mindreriskabel tillgång och varför har vi inte sett samma utveckling för sociala/hållbarhetsföretagsobligationsmarknaden?En beprövad matchningsmetod utförs genom att tillämpa Mahalanobis avstånd medfokus på gröna företagsobligationer utgivna av svenska fastighetsbolag på NasdaqNordics hållbara obligationslista. Vi jämför den initiala avkastningen utifrånmedelvärde och median med hjälp av parat t- test och Wilcoxon test. Våra resultatvisar att greenium i genomsnitt uppgår till 13,0 räntepunkter med en median på 13,6räntepunkter, båda på 1% signifikansnivå.Intervjuer genomförs med emittenter, investerare, banker och kreditvärderingsinstitut för att få en djupare förståelse för underliggande incitament och marknadenför hållbara obligationer. De flesta respondenter anser att en hållbar märkning ärkopplad till en premie. Utöver det anser respondenterna att emittering av hållbaraobligationer är en värdefull signal för att visa företagets hängivenhet till hållbarhet,där enbart investerare motsätter sig. Respondenterna menar vidare att sociala ochhållbarhetsobligationer halkar efter på grund av bristen på nyckeltal, regleringar ochatt sådana investeringar omfattar för små volymer. Med ytterligare regleringarminimeras risken för environmental, social och governance (ESG) washing, därrespondenterna anser att greenwashing framför allt blir mer sällsynt i takt med attmarknaden mognar. Slutligen tror samtliga respondenter på ytterligare tillväxt i bådegröna, sociala och hållbarhetsobligationer, dock i varierande grad.Våra resultat visar att det finns många incitament att lägga till hållbarhetsfaktorn ikapitalstrukturen för att minska finansiella kostnader samt förbättra (eller bibehålla)ett företags varumärke. Vi hoppas att våra resultat kan ge ytterligare incitament attemittera hållbara obligationer samt ge en djupare förståelse för de utmaningar sombromsar utvecklingen för sociala obligationer och hållbarhetsobligationer

This paper aims to find a coherent relationship between stock prices and bond yields on the day of issue. We show that stock prices seem to have a weak positive relationship with yields as investors seem to consider the underlying health of a firm before investing their money in either security. This contrasts with earlier research and falls in line with later research. The findings show that one percentage increase in share price on date of issue has the potential to raise yields by 0.20% given the near-zero interest environment of the euro.

We examine the factors that influence nonfinancial firms’ choice of issuing standard corporate bonds vis-à-vis contracting structured finance, in the form of project finance or asset securitization arrangements. Using a data set of deals closed by 4,700 European borrowers between 2000 and 2016, we find that informational frictions and issuance costs affect public firms’ borrowing source choices. Findings suggest that borrowers choose structured finance when they are relatively smaller, less profitable, have lower asset tangibility, and seek long-term financing. Our findings also document that borrowers resorting to asset securitization tend to have larger growth opportunity sets. Borrowers resorting to project finance are less creditworthy than corporate bond issuers and, on average, asset securitization deals have an 87.6 basis points borrowing cost advantage over corporate bond deals for switchers.

In this paper, we establish a comparison between one of the most traded financial derivatives in the markets, the so-called catastrophe bonds (abbreviated as cat bonds) and the corporate bonds. In the first section, we start from a brief definition as well as some basic concepts. In section two, we will enumerate the type of investors to whom these products might interesting and how to price them. Afterwards, in section three we move onto the analysis of the trading rule proposed, that is, the comparison with Corporate bonds, our benchmark, in terms of expected returns. In sections four and five, we will point out some key issues on how the credit risk associated to these products can be reduced and, finally, in the last section, we will conclude with some discussions and remark the state-of-the-art research on this field. || En este artículo establecemos una comparación entre uno de los derivados financieros más negociados en los mercados, los llamados bonos catástrofe (abreviados como bonos CAT) y los bonos corporativos. En la primera sección comenzamos con una breve definición y algunos conceptos básicos. En la sección dos, enumeraremos el tipo de inversores para quienes estos productos pueden ser interesantes y cómo se podría fijar el precio. Posteriormente, en la sección tres, pasamos al análisis de la regla de negociación propuesta, es decir, la comparación con los bonos corporativos, nuestro punto de referencia, en términos de rentabilidad esperada. En las secciones cuatro y cinco señalaremos, respectivamente, algunas cuestiones clave sobre cómo se puede reducir el riesgo de crédito asociado a estos productos y, finalmente, en la última sección, concluiremos con algunas discusiones y comentaremos las investigaciones más recientes sobre este tema.

This paper examines the pricing of structured finance (SF) – asset-backed securities (ABS), mortgage-backed securities (MBS), and collateralized debt obligations (CDO) – and straight debt finance transactions. Using a cross-section of 24,525 European bonds issued by financial and nonfinancial firms in the 2000–2016 period, we show that although ratings are the most important pricing determinant for SF and corporate bonds (CB) at issuance, investors rely on other contractual, macroeconomic, and firms’ characteristics beyond these ratings. We find that CDO tranches have, on average, higher credit spreads than similarly rated CB, while investors are not compensated for facing higher systematic risk components in relation to investment-grade ABS and MBS. Our results also support the hypothesis of SF transactions as mechanisms of reducing funding costs: SF transactions’ weighted average spread is lower than that of comparable CB and originating firms’ creditworthiness does not deteriorate when compared to a sample of matched firms.

59 p. ; Includes bibliographical references (pp. 39-41) ; October 11, 2021 ; The authors are grateful to Mirela Sandulescu, Pei (Alex) Zhang, and seminar participants at the 2020 Northern Finance Association Annual Meeting and 2020 Southern Finance Association Annual Meeting for helpful comments and suggestions. This paper analyzes the relation between ownership concentration and corporate bond volatility. We show that more concentrated mutual fund ownership is associated with higher volatility of corporate bonds. This relation is stronger among more illiquid bonds, during periods of heightened bond market illiquidity, and among bonds held by corporate bond funds that invest in more illiquid assets and experience higher or more correlated liquidity shocks. Using a sample of fund mergers, we further show that increases in bond volatility are not driven by the endogenous ownership structure of bonds, but rather the non-fundamental liquidity demand of large concentrated asset owners. Valuation Insight: Corporate bond holdings are highly concentrated in the holdings of institutional investors. This may lead to high volatility of corporate bond prices. The paper finds that this is indeed the case, esp. for more illiquid bonds and for bonds held by illiquid institutional investors. The non-fundamental liquidity demand of the institutional investors is found to be responsible for the corporate bond volatility. For valuation purposes, the price volatility of the bonds is not systematic and should not impact equilibrium bond values.

This paper explores how implicit government guarantees affect the yield spreads of Chinese corporate bonds. We argue that quasi-municipal corporate bonds ("Chengtou" bonds), issued by local government financing vehicles (LGFVs), carry an implicit government guarantee and therefore enjoy a reduced yield spread. Using a sample of publicly traded corporate bonds between 2010 and 2017, we show that bond investors are significantly less sensitive to bond-specific risks for corporate bonds with an implicit government guarantee: the yield spreads of Chengtou bonds are significantly lower than those of corporate bonds issued by privately-owned enterprises (POEs). Furthermore, we find that policy changes introduced by China's central government, which were intended to regulate local governments' debt financing activities, significantly reduced the gap in yield spreads between Chengtou bonds and bonds issued by POEs. Overall, our results suggest that implicit government guarantees play a crucial role in China's nascent corporate bond market, but that the country's recent policy changes have reduced the effectiveness of such guarantees, making China's corporate bond market more market-oriented.

The study analyzes the impact of domestic Russian mergers and acquisitions on the cost of debt for companies involved in deals. The author systematized the existing findings in this area in developed and emerging markets. The methodology developed by the author for analyzing the impact of mergers and acquisitions on the cost of debt considers the specifics of the Russian market and can be used in conditions of limited information about nonpublic companies. The estimation of the cost of debt is based on synthetic credit ratings of the companies involved in the deal and the corresponding yield spreads between corporate and government bonds. The methodology was tested on a sample of 73 domestic deals completed in 2014–2016. Random effects model with robust standard errors was used to test the significance of factors affecting the cost of debt. This research makes several practical contributions. First, in the studied sample, deals lead to an increase of the cost of debt by 3,1% within a year after the deal. Second, significant factors affecting the change in the cost of debt after domestic Russian mergers and acquisitions were identified. The cost of debt is reduced by the purchase of large companies during the period of economic growth. There is a significant impact of the deal value on the increase of the cost of debt. Company management, academic researchers and experts can use research results to assess potential deals of mergers and acquisitions on emerging markets. The developed methodology can be applied to mergers and acquisitions in other countries to analyze the features of these markets.

This thesis examines the credit risk exposure of US fixed income funds in the period after the great financial crisis by empirically analysing the effect of changes in the corporate bond ratings on the fund’s return and net flow ratio. The findings provide evidence for an increased credit risk exposure compared to the period before the great financial crisis but give no clear indication compared to the great financial crisis. The fund types detected to be exposed to the highest downside risk after the great financial crisis are the investment-grade focused bond funds and the high yield bond funds.

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Our work consists in an exploration of the integration of sustainability in the financial sphere, with a particular focus on capital markets and its actors, centered on the following research question : “are financial markets putting a price on the positive sustainable and environmental performance of firms?”. Our research is carried out within the theoretical framework of asset pricing, which is currently at the crossroads of two major revolutions. On the one hand is the sustainability revolution, which brings a challenge to these actors in the form of a massive global systemic risk which can only be compared in its possible global impact to the threat once posed by weapons of mass destruction. As financial actors are starting to understand the economic threats – amongst others – that represent climate action failure, biodiversity loss, extreme weather events and environmental disasters, financial markets will inevitably change. The five essays in this PhD dissertation represent an attempt, using the most reliable data at hand, to start understanding how these financial markets could be evolving. On the other is the data revolution bringing both massive and constant flows of new forms of data to financial market actors, which are dealt with through constant improvements in computational power and the corresponding highly demanding statistical and machine learning methods needed to analyze these continuously growing datasets. The first step of our work consists in exploring how practitioners, academics and regulators are trying to define what constitutes sustainable finance and allows us to understand how consensus on this central issue has still not been reached to date. In a second step, we then look at climate-aligned firms – companies that originate more than 75% of their turnover from climate-aligned activities – and analyze how capital markets have been financing both traditional and climate-aligned US and EU firms in the last decades. This analysis allows us to understand that corporate bond markets have a much larger role to play in financing these firms than stock markets. In a third step, we then choose to focus our attention on corporate bond markets and on the very specific challenge of building reliable financial datasets on traditional corporate bonds, green corporate bonds and bonds that are issued by climate-aligned firms. In a fourth step, using this detailed data treatment procedure, we apply traditional asset pricing methodologies to a dataset of both traditional bonds and climate bonds going from 2005 to 2019, finding some differences between these two products. Finally, our last step constitutes an attempt to understand, with these same datasets, how newly developed factors and machine learning methods could also be used to price corporate bonds and to differentiate traditional bonds from climate bonds., Notre travail consiste à étudier l’intégration des problématiques de développement durable dans la sphère financière en se focalisant principalement sur les marchés de capitaux et leurs acteurs et en se posant la question de recherche suivante : « est-ce que les marchés financiers mettent un prix sur les performances responsables et environnementales des entreprises ? ». Notre recherche est effectuée dans le cadre théorique de l’évaluation des actifs financiers, cadre théorique qui fait actuellement face à deux révolutions majeures. D’une part, la révolution « durable », qui pose une problématique nouvelle aux acteurs financiers sous la forme d’un risque systémique global qui ne peut être comparé dans son impact potentiel qu’à la menace que représentait les armes de destruction massives. Alors que les acteurs financiers commencent à comprendre le risque économique - entre autres – que représenterait un échec à atténuer le changement climatique, la perte de biodiversité, les évènements climatiques extrêmes et les catastrophes naturelles correspondantes, les marchés financiers vont inévitablement changer. Les cinq essais de cette thèse doctorale représentent une tentative, en utilisant les données les plus fiables disponibles aujourd’hui, de comprendre comment ces marchés financiers peuvent être en train d’évoluer. De l’autre, la révolution des données apportant des flux massifs et constants de nouvelles formes de données aux acteurs des marchés financiers, traitées à l’aide d’ordinateurs dont la puissance augmente constamment ainsi que de nouvelles méthode très exigeantes de traitement statistiques et de machine learning avancées nécessaires à l’analyse de ces bases de données grandissantes. La première étape de notre travail consiste à explorer comment les praticiens, les académiques et les régulateurs essaient de définir ce que constitue la finance responsable et nous permet de comprendre qu’un consensus sur ce sujet n’a toujours pas été atteint à ce jour. Dans une seconde étape, nous observons les entreprises climatiques – ces entreprises dont 75% du chiffre d’affaire provient d’activités alignées avec les objectifs climatiques de la conférence de Paris – et analysons comment les marchés de capitaux financent les entreprises traditionnelles et climatiques aux Etats-Unis et en Europe sur les dernières décennies. Cette analyse nous permet de comprendre que les marchés obligataires ont un rôle plus important de financement pour ces entreprises que les marchés des actions. Dans une troisième étape, nous choisissons de nous concentrer sur le marché des obligations d’entreprise et sur la problématique spécifique de construire une base de données financière fiable sur les données des obligations d’entreprise américaines, sur les obligations vertes et les obligations climatiques. Une quatrième étape consiste, en utilisant cette base de données, à appliquer les méthodes d’évaluation d’actifs classiques sur une base de données d’obligations d’entreprise traditionnelles et climatiques entre 2005 et 2019, et nous trouvons certaines différences entre ces deux produits. Finalement, une dernière étape consiste en une tentative de comprendre, en utilisant cette même base de données, comment de nouveaux facteurs et de nouvelles méthodes d’analyse de machine learning peuvent également être utilisés afin de mieux expliquer et de prédire le rendement des obligations d’entreprises et différencier les obligations d’entreprise traditionnelles et climatiques.

This thesis consists of three standalone studies on credit ratings. The first study is about split credit ratings. The introduction of the Dodd-Frank Act in 2010 reduced the importance of credit ratings and increased the penalties on credit rating agencies (CRAs) for inaccurate ratings. This study shows that the proportion of split-rated bonds increases after Dodd-Frank was enacted. These results are consistent with the threat of litigation making credit analysts engage in idiosyncratic information discovery to produce defendable quantitative information, thus leading to more split ratings. The second study examines the change in the regulatory use of multiple credit ratings after Dodd-Frank. This study finds that post Dodd-Frank reform, firms are less likely to demand a third rating (typically from Fitch) for ratings near the HY-IG boundary to support their new corporate bond issues. Third ratings also become less informative post Dodd-Frank, with a much weaker market impact on credit spreads for firms with S&P and Moody’s ratings on opposite sides of the HY-IG boundary. This study provides new evidence on the effect of Dodd-Frank in curbing corporate borrowers’ strategic use of multiple credit ratings near this boundary. The third study examines the effect of credit rating disagreements on merger and acquisition (M&A) decisions. It shows that acquirers with split ratings prefer to use stock to finance their acquisitions. More importantly, this study finds that acquirers with split ratings experience lower announcement returns. Further analysis shows that overpayment by acquirers with split ratings is concentrated in acquirers with entrenched managers. Overall, the evidence indicates that credit rating disagreements are heavily priced in the M&A market. Overall, this thesis provides new empirical evidence on the financial market implications of discordance in credit assessments across CRAs and how it shapes firms’ financial decisions.

Данная работа посвящена анализу фондового рынка рынка России и направления его развития (в фокусе ÐºÐ¾Ñ€Ð¿Ð¾Ñ€Ð°Ñ‚Ð¸Ð²Ð½Ñ‹Ñ Ð¾Ð±Ð»Ð¸Ð³Ð°Ñ†Ð¸Ð¹): 1. Выявление функций фондового рынка . 2. Изучение особенностей фондового рынка России 3. Рассмотрение российского и международного опыта инвестиций. 4. Оценка состояния фондового рынка и значимости облигаций на рынке Ñ†ÐµÐ½Ð½Ñ‹Ñ Ð±ÑƒÐ¼Ð°Ð³. 5. Анализ фондового рынка россии и направления его развития (в фокусе ÐºÐ¾Ñ€Ð¿Ð¾Ñ€Ð°Ñ‚Ð¸Ð²Ð½Ñ‹Ñ Ð¾Ð±Ð»Ð¸Ð³Ð°Ñ†Ð¸Ð¹) 6. Определение направлений развития отечественного фондового рынка . Работа проведена на базе Института промышленного менеджмента, экономики и торговли ВИЭШ , В результате был проведен многофакторный анализ взаимосвязей успешности размещения ÐºÐ¾Ñ€Ð¿Ð¾Ñ€Ð°Ñ‚Ð¸Ð²Ð½Ñ‹Ñ Ð¾Ð±Ð»Ð¸Ð³Ð°Ñ†Ð¸Ð¹ на отечественном фондовом рынке, можно прийти к выводу, что несмотря на значительные отклонения в отдельный Ð¾Ñ‚Ñ€Ð°ÑÐ»ÑÑ ÑÐ¼Ð¸Ñ‚ÐµÐ½Ñ‚Ð¾Ð², выпуски ÐºÐ¾Ñ€Ð¿Ð¾Ñ€Ð°Ñ‚Ð¸Ð²Ð½Ñ‹Ñ Ð¾Ð±Ð»Ð¸Ð³Ð°Ñ†Ð¸Ð¹ в превалирующим большинстве своем успешны. Проведенный анализ позволяет определить наибольшую зависимость между успешностью размещения и параметрами облигационного займа, что в практическом применении способно повысить шансы успешного размещения для эмитента., The topic of the final qualification work: "problems and prospects of the stock market development in modern Russia (on the example of the corporate bond segment)". This paper is devoted to the analysis of the stock market of the Russian market and the direction of its development (in the focus of corporate bonds): 1. Identification of the functions of the stock market . 2. Study of the features of the Russian stock market 3. Review of Russian and international investment experience. 4. Assessment of the state of the stock market and the importance of bonds in the securities market. 5. Analysis of the Russian stock market and the direction of its development (in the focus of corporate bonds) 6. Determining the directions of development of the domestic stock market . The work was carried out on the basis of the Institute of Industrial Management, Economics and Trade of the VIESH , As a result, a multi-factor analysis of the relationships between the success of corporate bonds placement on the domestic stock market was conducted, and it can be concluded that despite significant deviations in the individual sectors of issuers, corporate bond issues are mostly successful. The analysis allows us to determine the greatest dependence between the success of the placement and the parameters of the bond loan, which in practical application can increase the chances of a successful placement for the issuer.

After the announcement of the European Central Bank's corporate quantitative easing program, non-financial corporations timed the bond market by shifting their issuance toward bonds eligible for the program. However, issuers of eligible bonds did not increase total issuance compared to other issuers; nor did they experience different economic outcomes. Instead, the announcement produced substantial spillover effects on risk premia. Credit risk premia declined, both in the corporate bond market and in the default swap market, whereas the valuation of eligible bonds did not change relative to comparable ineligible bonds. Firms took advantage of reduced risk premia by issuing riskier bond types. Using a novel and comprehensive dataset of corporate bonds in the euro area, we document how firms substituted across bond characteristics, and we find evidence of their intention to time the market. Our model indicates corporate market timing is instrumental in allowing quantitative easing to produce spillover effects.

In late Mars 2020, Covid19was declared to be a pandemic by the World Health Organization.The following crisis negatively affected the overall economy and also the Swedish corporate bond market. Generally, corporate bonds have been described as secure investments during turbulent market conditions, but now they decreased in value rapidly. The sellpressure was of unprecedented measures and it became difficult and costly for companies to issue new corporate bonds in order to refinance operations. Meanwhile, it became difficult for investors to sell their holdings as the liquidity deteriorated. Shortly after, the Swedish National Bank declared the Swedish corporate bond market to be highly dysfunctional. Moreover, the Swedish National Bank and the Financial Supervisory Authority identified some characteristics of the Swedish corporate bond market that contributed to the severe market stress, namely; (1) Limited liquidity and a small market (2) Lacking transparency and unreliable price information (3) Most issuers lacking a credit rating (4) A homogeneous group of investors and (5) Real estate companies constituting a large share of total issuers. These characteristics are defined as the five areas of concern in this thesis. This qualitative study is based on interviews with market participants. The objective is to identify which area of concern should be prioritized in order to improve the Swedish corporate bond market and which improvement measure is deemed most effective. The results show that transparency is the area of concern that should be prioritized. Nevertheless, the new selfregulations that will be implemented July 1st, 2021 with the purpose to improve transparency is not deemed to be enough, but rather a step in the right direction. Therefore, an iterative process is suggested, continuously evaluating and adjusting, ensuring that transparency improves but not to such an extent that liquidity is negatively impacted. I mars 2020 deklarerade Världshälsoorganisationen att spridningen av Covid19 hade utvecklats till en pandemi. Krisen påverkade hela världsekonomin negativt och även den svenska företagsobligationsmarknaden. Företagsobligationer har generellt beskrivits som säkra investeringar under turbulenta marknadsförhållanden, men nu förlorade de sitt värde mycket snabbt. Försäljningstrycket var enormt och gjorde att det blev dyrt för företag att emittera nya obligationer och refinansiera sin verksamhet. Samtidigt blev det svårt för investerare att sälja sina innehav då likviditeten snabbt försämrades. Strax därefter uppgav Riksbanken att företagsobligationsmarknaden var högst dysfunktionell. Vidare identifierade Riksbanken och Finansinspektionen fem karaktärsdrag på den svenska företagsobligationsmarknaden som kan ha bidragit till den stressade marknadssituationen. Karaktärsdragen var följande; (1) Begränsad likviditet och en liten marknad (2) Bristande transparens och opålitlig prisinformation (3) Faktumet att många emittenter saknar kreditbetyg (4) En homogen grupp av investerare (5) Majoriteten av emittenterna utgörs av fastighetsbolag. De fem identifierade karaktärsdragen har definierats som de fem problemområdena i följande uppsats. Uppsatsen är en kvalitativ studie baserad på intervjuer med marknadsaktörer. Målet är att identifiera vilket av de fem problemområdena som bör prioriteras i arbetet mot en förbättrad företagsobligationsmarknad samt att fastslå vilka förbättringsåtgärder som anses vara mest effektiva. Resultaten visar att transparens är de problemområde som bör prioriteras men att den nya självregleringen som skall implementeras den första juli år 2021 med syftet att förbättra transparensen anses vara otillräcklig. För att förbättra transparensen föreslås en iterativ process med kontinuerlig utvärdering och anpassning av regleringar. Genom en iterativ process kan man även säkerställa att transparenskraven inte blir så pass strikta att de påverkar likviditeten negativt.

Artículo de revista In the early stages of the global financial crisis and the COVID-19 crisis, bond issuance by non-financial and non-bank financial corporations in the developed economies hit record levels. However, the underlying reasons for this are different: during the global financial crisis, bond issuances were made to replace bank loans, whereas during the COVID-19 pandemic they have been made to address a liquidity problem caused by the restrictive measures adopted to combat the virus. There are also significant differences between the issuances made during the two crises; notably the considerable decline in financing costs on account of lower market interest rates, which may partly explain the longer average duration of bonds, and the greater use of funds to refinance existing liabilities. The issuance of high-yield bonds has also risen and the sectoral breakdown of the issuers has changed.

We disentangle asset-specific, market, and funding liquidity in the CDS-Bond basis outside and during the 07/09 Global Financial Crisis Our findings stress the importance of separating different types of liquidity, since all three measures have independently negative impacts on the basis Funding liquidity emerges as the economically most important liquidity metric While asset-specific liquidity is cross-correlated in both the cash and derivative markets, funding and market liquidity only matter for the cash market We exploit the decomposition of the basis to test predictions of limits-to-arbitrage theories We find strong evidence in favor of margin-based asset pricing and flight-to-quality effects This article is protected by copyright All rights reserved

This paper examines whether the total amount issued of a company has an effect on corporate bonds’ yield spreads on the Swedish debt capital market. With panel data regression of over 150,000 observations from over 20 investment graded companies, it is found that the relationship is smile-like. Companies with lower and higher amount of issued bonds have a higher yield spread compared to those in the middle-size range of the same credit risk. The significance hold after controlling for other regressors such as bond-specific, firm-specific, and macroeconomic variables. The effect can be viewed as a market-illiquidity problem from the theory of constrained investors where Swedish issuers outgrow the smaller SEK market and the yield spread levels are not fully explained by default risk determinants. The paper’s result indicates that the total amount outstanding of a company has a role in explaining the dynamics of corporate bonds’ yield spread. Denna uppsats undersöker om det totala utfärdade beloppet för ett företag har en effekt på företagsobligationers yield spread på den svenska skuldkapitalmarknaden. Med paneldataregression på över 150,000 observationer från över 20 investeringsgraderade företag kan det konstateras att förhållandet är icke-linjärt. Företag med lägre och högre belopp emitterade obligationer har en högre yield spread jämfört med dem i medelstorleksintervallet av samma kreditrisk. Signifikansen håller efter kontroll för andra regressorer, såsom obligationsspecifika, företagsspecifika och makroekonomiska variabler. Effekten kan ses som ett problem med illikviditet på marknaden utifrån teorin om begränsade investerare där svenska emittenter växer ifrån den mindre SEK-marknaden. Uppsatsens resultat indikerar att det totala utestående beloppet för ett företag har en roll i att förklara dynamiken i företagsobligationernas yield spread.

We study the timing of the European Corporate Sector Purchase Program and its direct effect on corporate financing decisions. Consistent with the goal of reducing credit premia, more timely purchases are observed for eligible bonds characterized by higher credit risk. Firms effectively targeted increase their relative use of market debt and the maturity of newly issued bonds more than eligible but not (yet) targeted issuers. The estimated effect is not driven by the verified relation between selection and credit risk. The program has fostered the ability to tap credit markets directly especially for eligible corporations whose bonds are actually purchased.

In the last decade, Swedish commercial real estate companies have increased their presence on thecorporate bond market significantly. The real estate companies now account for the majority ofoutstanding bonds and the trend appears to continue. Furthermore, the companies strive to achieve acredit rating within the boundaries of what is known as Investment Grade. Being rated Investment Gradeby the rating agencies generally means access to a broader investor base and better terms for borrowing.Consequently, the investors on the Swedish bond market are now more exposed to the real estate marketand the real estate companies rely on the bond market for their financial needs. The Swedish Financial Supervisory Authority has commented on the increased presence of commercialreal estate companies on the Swedish bond market and proclaimed that it is not clear whether it increasessystemic risk or not. However, as was shown by the Coronavirus pandemic, the Swedish bond markethas flaws relating to liquidity which can be triggered by an increased selling pressure. A scenario forincreased selling pressure could be a collective downgrade of commercial real estate companies to belowinvestment grade, also known as a fallen angel event. This degree project aims to increase the understanding within the field of risk analysis of credit ratingdowngrades of real estate companies issuing corporate bonds. Furthermore, the study aims to identify ifprerequisite factors for a downgrade scenario are present. This study is based on a multi-methodquantitative approach. The Altman Z-score will be performed on the companies in the lower bounds ofinvestment grade to identify if there are early warnings of financial distress and if any companies shouldbe downgraded. By means of a questionnaire, the aim is to identify how domestic investors are allowedto act in a downgrade scenario and what factors affect their actions. The study will also perform asensitivity analysis of the same companies to investigate how sensitive they are to changes in a set ofparameters before reaching the boundaries of investment grade established by the rating agencies. The study shows that one in five investors are required to sell a bond that has been downgraded to belowinvestment grade. This may cause a first mover advantage effect, which in turn leads to fire sale ofdowngraded bonds. Not in line with previous literature, one out of six insurance investors are notallowed to keep downgraded bonds according to the questionnaire results. Furthermore, the results ofthe survey indicate that the investors that are not allowed to keep downgraded bonds are to a large extentgoverned by regulatory restrictions. 81 percent of the investors have a discretionary mandate allowingthem to keep downgraded bonds and it is unclear how these investors will act in a fallen angel’s scenario.It can be argued that a discretionary mandate creates a setting for market shortcomings such asreputational concerns among portfolio managers. The study also showed that five of the analyzed companies achieved a Z-score equivalent belowInvestment Grade. This translates to approximately 15 percent of the real estate companies withinvestment grade which means that the results of the Altman Z-score suggests a three times higherdowngrade probability than the historical global average for Investment Grade rated companies. Thesensitivity analysis revealed that companies' sensitivity to net operating income ranged between 2 - 13percent with the majority of the companies between 2 - 6 percent. The sensitivity to valuation yieldranges from 0.05 - 0.76 percent with the majority in the range from 0.24 - 0.45 percent. Furthermore,the sensitivity to change in interest rate ranged between 0.45 - 2.25 percent with the majority reachinga downgrade trigger relating to interest coverage ratio with a change between 0.45 - 0.7 percent. Det senaste årtiondet har svenska kommersiella fastighetsbolag ökat sin närvaro påobligationsmarknaden. Numera står fastighetsbolagen för merparten av utestående företagsobligationeroch det finns inga tecken på att trenden är avtagande. I och med den ökade upplåningen påobligationsmarknaden strävar fastighetsbolagen att uppnå ett kreditbetyg inom gränsen för vad sombenämns “Investment Grade”. Ett kreditbetyg av denna dignitet innebär generellt tillgång till en bredareinvesterarbas samt bättre villkor för upplåning. En konsekvens av ovan är att investerare inom svenska företagsobligationer är mer exponerade motfastighetssektorn än tidigare samt att fastighetsbolagen är mer beroende av obligationsmarknaden för atttillgodose sitt finansieringsbehov. Finansinspektionen har uttryckt sin oro över fastighetsbolagens ökadenärvaro på obligationsmarknaden och samtidigt kommenterat utvecklingen med att det är oklarthuruvida det ökar systemrisken. Det står dock klart att den svenska företagsobligationsmarknaden harbrister, vilka framkom under Coronapandemin. Bland annat tydliggjordes brister i likviditeten till följdav ett ökat säljtryck. Ett alternativt scenario med potential för ökat säljtryck är nedgradering avkreditbetyg vilket resulterar i att företag förlorar sitt Investment Grade betyg. Detta examensarbete syftar till att öka förståelsen kring riskanalys av nedgradering av kreditbetyg hosfastighetsbolag. Vidare ämnar rapporten identifiera om förutsättningarna för ett scenario mednedgraderingar av kreditbetyg som resulterar i problem på obligationsmarknaden föreligger. Studienutgår ifrån tre kvantitativa metoder. Genom en enkätundersökning undersöks hur inhemska investerareär tillåtna att agera i ovan nämnt scenario samt vilka faktorer som påverkar deras beslut. Studien kommer även att utföra en känslighetsanalys på fastighetsbolagen i de nedre regionerna av Investment Grade isyfte att synliggöra hur känsliga de är för en potentiell nedgradering av kreditbetyget. För att belysa omdet finns eventuella tidiga varningssignaler i fastighetsbolagens finansiella förmåga kommer Altman Zscore att utföras på bolagen. Studien visar att en av fem investerare måste sälja om det emitterande bolaget nedgraderas frånInvestment Grade vilket kan resultera i det som benämns First mover advantage bland investerarna itidigare litteratur. Detta kan i sin tur leda till s.k. fires sales av nedgraderade obligationer och därmed ettökat säljtryck. Resultatet av enkäten visar vidare att endast en av sex investerare frånförsäkringsbolag/livbolag inte har rätt att behålla nedgraderade obligationer vilket inte är i linje medtidigare utförda studier. Enkätsvaren visar även att investerare som inte får behålla nedgraderadeobligationer förhåller sig mestadels till regulatoriska begränsningar. Resultatet av enkäten visar att ca80 procent av investerarna har diskretionära mandat att själva bestämmer om de ska behålla eller säljaen nedgraderad obligation. Vi argumenterar för att det diskretionära mandatet innebär att investerarnasval kan påverkas av fenomen som till exempel hur deras förmåga att bedöma kreditrisk framstår.Slutligen visar studien att fem av de elva analyserade bolagen fick ett Altman Z-score motsvarandeunder Investment Grade. Detta motsvarar ungefär 15 procent av fastighetsbolagen med InvestmentGrade och innebär att Altmans metod ger en sannolikhet av nedgradering som är tre gånger större än dethistoriska genomsnittet i välden. Känslighetsanalysen visade att bolagen kunde motstå ändring avdriftnettot mellan 2 - 13 procent innan de degraderades. Känsligheten till värderingsyield låg mellan0.05 - 0.76 procent med merparten mellan 0.24 - 0.45 procent. Sist så uppmättes känsligheten igenomsnittlig låneränta till mellan 0.45 - 2.25 procent med merparten mellan 0.45 - 0.70 procent innande nedgraderas.

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This article presents the first tests of technical trend-following rules (TTRs) and the 52-week high strategy in individual corporate bonds, along with comparisons to corresponding stocks. Over the 2002-2015 period, TTR and the 52-week strategy are unprofitable in both bonds and stocks. Short legs of these trend-following strategies lead to significant losses in corporate bonds, which can be interpreted as evidence of bond investors' overreaction to bad news. Thus, short-term contrarian strategies, the profitability of which is viewed as the reward to liquidity provision, are more rewarding in corporate bonds. TTR buy signals can predict lower-volatility days in bonds as in stocks, despite the low/negative return correlations between the two. Refereed/Peer-reviewed

The corporate bond market development is integral to increase the resilience of the Russian economy to external shocks and to build a new growth model in terms of sanctions. The purpose of the article is to analyze the current state of the Russian corporate bond market and to develop proposals for accelerating its further development considering the international experience. The proposals are based on a study of the legal base for the functioning of the international bond market, as well as modern technologies and tools that have proven to be effective in practice. As part of a comparative analysis, a hypothetical-deductive research method has been used. The author has proposed: to develop and adopt independent federal law “On Corporate Bonds”; to amend and supplement the Russian legislation on the protection of the rights of investors who purchase corporate bonds; to make trial (debut) issues in the Russian stock market for bonds denominated in foreign currencies (for example, in RMB); to expand the line of bond types, etc. It has been concluded that, despite the unfavorable external and internal conditions, there is a steady increase in the number of issuers and corporate bonds in circulation in Russia. Active bond issue in the Russian financial market in the near future will happen not only in the corporate, but also in the public segment. It will require more active involvement of individuals in purchasing government and corporate bonds as investors. Various types of institutional investors competing with banks will also be attracted. Corporate bond issue can ease the financial burden of banks and companies that have problems with refinancing their external debts. It can also help to solve the problem of financing of the Russian companies that have focused on obtaining various bank loans in order to implement their business plans. This will help to increase the supply of temporarily free monetary resources, to reduce their cost and more efficiently transform savings into investments.

The increasing societal focus on environmental issues leads to important questions about the relationship between corporate environmental (ESG) performance and firms'' cost of capital, but research on this topic remains scant. The real estate sector offers an ideal testing ground to investigate the relationship in two distinct manners, while specifically addressing concerns about endogeneity. We first investigate the spreads on commercial mortgages collateralized by real assets, some of which are environmentally certified. We then study spreads on corporate debt of property companies (REITs), both at issuance and while trading in the secondary market. The results show that loans on environmentally certified buildings command lower spreads than conventional, but otherwise comparable buildings, varying between 24 and 29 basis points, depending on the specification. At the corporate level, REITs with a higher fraction of environmentally certified buildings have lower bond spreads in the secondary market. These results are robust to different estimation strategies, and signal that environmental risk is efficiently priced in the real estate debt market. Crown Copyright

An important direction for the stabilization of economic development is the existence of effective mechanisms for attracting financial resources by business entities. Due to its investment capacity, Russia’s corporate securities market plays an important role in the financial system of the state. The need for economic recovery (after crisis, military-political, sanction and other force majeure circumstances) also requires the widespread use of corporate securities as equity capital raising instruments. The formation of the corporate securities market enables the financing of the needs of economic entities in the three institutional sectors – financial, non-financial corporations and households. In spite of the importance of access to financial resources of contractors of all institutional sectors, financing of the sector of non-financial corporations (enterprises-subjects of the real sector of economy) in today’s conditions determines the rates and proportions of economic development. Enterprises – market participants decide the issue of attracting the necessary resources through the issue of various equity and debt corporate securities. This determines their investment position in capital markets and, at the same time, reveals the ability to use the investment potential of the corporate securities market.In this regard, the article deals with the peculiarities of the formation of the market for Russian corporate bonds. Various indexes of corporate bonds of the Moscow Stock Exchange are considered. A detailed analysis of the placement of corporate bond loans in the sectors of the fuel and energy industry and heavy industry has been conducted. The main dominant industries, attractive for investors in recent years, as well as branches in which the investment decline is observed, are revealed.The conducted researches can serve as the basis for the development of practical recommendations for improving the efficiency of the functioning of the corporate securities market.

This paper evaluates the appropriateness of the standard methodology used to estimate the liquidity proxy proposed by Corwin and Schultz (2012) for the case of corporate bonds. These assets are infrequently traded, even when they are selected with activity requirements, and display great time-varying volatility during recession periods. However, the estimation of this liquidity proxy requires that the asset be traded daily continuously and that the volatility be proportional to the time interval. I propose a generalization of the original measure that allows for its practical estimation, even for non-continuous trading. The results show that this general version, estimated using information only from days with trades and discarding negative spreads, is more accurate than the standard one.

Over the years it has become fashionable to argue that a vibrant bond market would be vastly superior to the present bank-led model of debt finance for industries and businesses in emerging economies. While it works well in most developed economies, in countries like India, despite all efforts of the central bank and the financial markets regulators or regulatory authorities, business firms still depend largely on the banking system for their debt capital funds. This study is an attempt to enquire into whether it is the measurable parameters such as cost of funds or the buoyancy in the economy that affects the firms’ deci-sions or not. If not, it would follow that other qualitative or behavioral (or non-measurable) factors may be responsible for the lack of firms’ appetite for issuing bonds.

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.

The article analyzes the current trends of financing Russian non-financial companies, formed in the mid‑2010- is during the slowdown of the growth of the national economy, the reduction of foreign capital inflows and the introduction of anti-Russian sanctions. The purpose of the study is to analyze changes in the dynamics and structure of sources of financing of domestic companies that occurred in 2014–2017, as well as to assess possible measures to expand the availability of financial resources for them. We used general scientific methods of statistical analysis, scientific abstraction and logical generalization, as well as comparative and institutional approaches. The paper considers the dynamics and peculiarities of financing of Russian companies in 2014–2017. We established that despite the compression of foreign capital inflow that occurred in the specified period, the enterprises were able to largely compensate losses increasing borrowings from domestic banks and the corporate bond market, as well as obtaining financial support from the state in the framework of anti-crisis measures. The replacement of foreign financing with domestic sources allowed to maintain the stability of the corporate sector during the crisis period. However, today, when the economy is out of crisis and enterprises to need additional funds for business development, they face a limited supply of financial resources in the domestic market, mainly due to the sharp slowdown in the dynamics of bank lending to the real sector, observed since 2015. We conclude that in the conditions of reduction of capital imports the main reserve for increasing the availability of financial resources for the Russian enterprises is the increase of bank lending to the economy. In order to encourage it, the state should actively expand the practice of public-private partnership mechanisms in the financial and banking sector, including the provision of guarantees for loans and joint financing with banks of priority investment projects.