The demand effect of yield-chasing retail investors: Evidence from the Chinese enterprise bond market

The biggest challenge facing countries, including India, is creating and managing an LCR (low carbon resilient) economy, which balances the need for high growth rates and is environmentally sustainable. The green bond market provides investors the means to help change the economy into an LCR economy. The study was undertaken to understand the key drivers and the factors influencing the individual retail investor’s decision to invest in green bonds. A survey instrument was designed and administered through the snowball sampling technique to 125 Indian respondents of various age groups who were eligible to invest in the Indian bond market. SPSS software was used to conduct a descriptive analysis followed by regression and conjoint analyses. The study results suggest that the Environmental, Social, and Governance (ESG) rating and credit rating of the green bond issuers are the key factors that influence an individual’s investment decision. The findings also highlight that incentives such as tax exemptions and awareness of green bonds also affect an investor’s decision. This research stands out as one of the first attempts to understand the Indian retail investors’ perception of a green bond.

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The Analysis on Credit Spread Determinants of Chinese Enterprise Bond and Corporate Bond

Korea International Trade Research Institute ◽

10.16980/jitc.15.1.201902.399 ◽

2019 ◽

Vol 15 (1) ◽

pp. 399-419

Author(s):

Jun-Jin Kim ◽

Jae-Hyun Lee

Keyword(s):

Corporate Bond ◽

Credit Spread ◽

Chinese Enterprise ◽

Enterprise Bond

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The Macroeconomic Uncertainty Premium in the Corporate Bond Market

Journal of Financial and Quantitative Analysis ◽

10.1017/s0022109020000538 ◽

2020 ◽

pp. 1-26 ◽

Cited By ~ 4

Author(s):

Turan G. Bali ◽

Avanidhar Subrahmanyam ◽

Quan Wen

Keyword(s):

Cross Section ◽

Bond Market ◽

Corporate Bond ◽

Economic Uncertainty ◽

Corporate Bond Market ◽

Macroeconomic Risk ◽

Macroeconomic Uncertainty ◽

Retail Investors ◽

Investment Grade

Abstract We examine the role of macroeconomic uncertainty in the cross section of corporate bonds and find a significant uncertainty premium for both investment-grade (IG) (0.40% per month) and non-investment-grade (NIG) (0.81% per month) bonds. The economic-uncertainty premium declines as we progressively remove downgraded bonds, indicating that the premium represents an increase in required returns for bonds with higher credit and macroeconomic risk. The economic-uncertainty premia vary across equities and bonds in a manner consistent with the heterogeneous risk-aversion levels of dominant players in equities (retail investors) versus bonds (institutional investors).

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The Future of Corporate Bonds - Collateral, Risks, New Legal Regulations

10.7172/978-83-65402-94-3.2019.wwz.3.14 ◽

2019 ◽

pp. 191-196

Author(s):

Ewa Ciborowska

Keyword(s):

Research Study ◽

Corporate Bonds ◽

Bond Market ◽

Legal Regulations ◽

Study Results ◽

Bond Issues ◽

Retail Investors ◽

The Future ◽

The Subject

The following article presents corporate bonds as one of the important ways for entrepreneurs to obtain financing. There were presented the risks of corporate bonds investors i.e. disproportion of information and significant risks occurring mainly on the retail investors. Besides the author presented the new regulations of Act on Bonds which ensure greater security of trading on the bond market. The Act is intended to strengthen control over the bond market through dematerialization and registration of all bond issues in the National Depository for Securities (KDPW), which until now existed only for public offers. The research study results included in the article should contribute to filling the significant gap in the literature of the subject and facilitate conducting analysis of corporate bonds market in Poland.

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