We estimate short-run reactions of government bond spreads of selected EU countries to prime ministers' and finance ministers' public statements about fiscal policy from 2000 to 2019. Our dataset, which is based on the Factiva database, covers news that reached the markets via Reuters. Depending...

This paper takes the interest rates of China's government bond as the research object, and demonstrates the feasibility of the yield curve factor model by analyzing the Bootstrap, DNS, AFNS model of yield curve. Then based on the factor construction, construct the yield curve factor. In order to...

This paper investigates whether firms are able to diversify the maturity structure of their bond profiles given the availability of the offshore bond markets. I look at average maturity, maturity structure, and the inverse of the Herfindahl index to explore the maturity diversification effect. I...

I examine how corporate investment responds to the supply of private activity bonds (PAB), which are tax-exempt municipal bonds issued on behalf of private sector firms. Exploiting a change in the state-level cap for PABs as mandated by the 1986 Tax Reform Act, I compare the real effects of...

This paper documents the rise of “poison bonds”, which are corporate bonds with a covenant that allows bondholders to demand immediate repayment in a change-of-control event. The share of poison bonds among new issues has grown substantially in recent years, from below 20% in the 90s to over...

In 2016 Poland was the first EU country to issue a Green Bond Principles-aligned bond to finance environmental projects. Since then, sovereign issuance in the EU grew enormously. In just over five years the market grew to over 290 bn euro outstanding sovereign ESG bonds in the EU in 2022. 16...

Sustainability-Linked Bonds (SLBs) are a novel fixed income instrument linked to the achievement of predefined sustainability performance targets. The innovation of SLBs is a penalty mechanism – typically a coupon step-up – intended to incentivize the issuer to deliver on climate goals with...

This paper examines the determinants of bond issuance in the Chinese market and the influence of capital structure-in particular direct debt finance-on firm performance and the cost of debt. The results reveal that institutional factors in the Chinese market, in particular the involvement of the...