1. Does Climate Risk Affect Corporate Bond Yields Equally across Terms?
- Author
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Jiemin Huang
- Subjects
- *
CORPORATE bonds , *BONDS (Finance) , *CREDIT ratings - Abstract
This paper selects the data of corporate bond from 2005 to 2019, then divides them into long term bond and short term bond according to maturity of bond. Climate risk is found have significant impact on long term bond yield. Climate risk has no significant impact on short term bond yield. Callability has significant effect on both long term and short term bond yield, while callability has large effect on short term bond and relatively small effect on long term bond. The resale has significant effect on both long term and short term bond yield. The significant effect of the resale on short term bond yield explains large part of the short term bond yield. Issuance has significant impact on both long term and short term bond, with larger impact on short term bond yield. Maturity has significant effect on the yield of both long term and short term bond, and the effect is larger for short term bond. Bearish sentiment is negatively and significantly related to long term bond yield, but has no significant effect on short term bond yield. Credit ratings have large impact on long term bond yield and explain large part of this. However, credit ratings have no significant effect on short term bond yield. [ABSTRACT FROM AUTHOR]
- Published
- 2023