scholarly journals The Behavior of Dealers and Clients on the European Corporate Bond Market: The Case of Multi-Dealer-to-Client Platforms

2016 ◽  
Vol 02 (03n04) ◽  
pp. 1750004 ◽  
Author(s):  
Jean-David Fermanian ◽  
Olivier Guéant ◽  
Jiang Pu
Keyword(s):  
Financial Markets ◽  
Corporate Bonds ◽  
Bond Market ◽  
Corporate Bond ◽  
Fixed Income ◽  
Corporate Bond Market ◽  
Proprietary Database

For the last two decades, most financial markets have undergone an evolution toward electronification. The market for corporate bonds is one of the last major financial markets to follow this unavoidable path. Traditionally quote-driven (i.e., dealer-driven) rather than order-driven, the market for corporate bonds is still mainly dominated by voice trading, but a lot of electronic platforms have emerged. These electronic platforms make it possible for buy-side agents to simultaneously request several dealers for quotes, or even directly trade with other buy-siders. The research presented in this paper is based on a large proprietary database of requests for quotes (RFQ) sent, through the multi-dealer-to-client (MD2C) platform operated by Bloomberg Fixed Income Trading, to one of the major liquidity providers in European corporate bonds. Our goal is (i) to model the RFQ process on these platforms and the resulting competition between dealers, and (ii) to use our model in order to implicit from the RFQ database the behavior of both dealers and clients on MD2C platforms.

scholarly journals Evaluation of Corporate Bond Market Performance in Bangladesh

IIUC Studies ◽  
2016 ◽  
pp. 127-144
Author(s):  
Abu Hanifa Md Noman Bin Alam ◽  
Serajul Islam ◽  
Nazneen Jahan Chy
Keyword(s):  
Stock Market ◽  
Corporate Bonds ◽  
Vital Role ◽  
Bond Market ◽  
Corporate Bond ◽  
Convertible Bond ◽  
Primary Data ◽  
Alternative Source ◽  
Corporate Bond Market ◽  
Secondary Information

Bond market plays a vital role in economic development of a country. Bond market provides long term finance to issuers by creating alternative source of finance through stock market, besides providing stable source of income to investors against volatile stock market. However, Bangladesh corporate Bond market is at very initial stage. Hence, it is needed to make an analysis of investors’ attitude towards corporate bonds in Bangladesh for determining investors finding on the issue. The study is limited to performance evaluation of three corporate bonds in corporate bond market in Bangladesh and investigate investors attitude towards it. We have collected secondary information from DSE web site and processed through SPSS to make performance analysis and collected primary data from investors of some brokerage houses in Chittagong metro through questionnaire survey for analyzing investors’ attitude towards corporate bond market. The study has found that price stability of ACI zero coupon bond is more than IBBL Perpetual Mudaraba Bond and BRAC subordinated convertible bond and it is also found that only 5% of respondents prefers to invest in corporate bonds due to lack of supply of corporate bond, lack of investors’ awareness, inadequate market regulations etc.IIUC Studies Vol.10 & 11 December 2014: 127-144

Pricing Effectiveness on the Russian Corporate Bond Market

2017 ◽  
Vol 2017 (4) ◽  
pp. 3-28
Author(s):  
Tamara Teplova ◽  
Darya Budanova
Keyword(s):  
Corporate Bonds ◽  
Total Sample ◽  
Bond Market ◽  
Corporate Bond ◽  
Return Periods ◽  
Corporate Bond Market ◽  
Reversal Effect ◽  
Strategy Design ◽  
Selection Of

In this paper, the question of price anomaly’s existence in the ruble bond market is considered. The construction of the profitable investment (trade) strategy on the relatively best and relatively worst corporate bonds that are ranged by the historical return allows to reveal the anomaly. The testing is conducted at the total sample (303 bonds of Russian issuers) and the sub-sample (25 liquid bonds of Russian issuers). The results that include the selection of the trade strategy’s design (the analysis of more than 6 thousand combinations of historical return periods investment periods and the percentiles of the best and worst portfolios) allow to detect the reversal effect (when the profitable strategy includes investing in to former losers who have demonstrated the lowest historical return). The investments in former winners also may be profitable, but the parameters of the strategy design become crucial to reach this effect. The result above justifies the fact that Russian corporate bond market is overestimated, the bond demand is higher that the bond supply that leads to the anomaly in the dynamics of the return, when the investment in losers makes it possible to get profit.

scholarly journals Corporate Bond Market: International Experience and Russian Practice

2019 ◽  
Vol 23 (2) ◽  
pp. 74-83
Author(s):  
I. A. Balyuk
Keyword(s):  
Financial Burden ◽  
Corporate Bonds ◽  
International Experience ◽  
Bond Market ◽  
Bank Loans ◽  
Corporate Bond ◽  
Steady Increase ◽  
Bond Issue ◽  
Corporate Bond Market ◽  
Active Involvement

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.

scholarly journals REGULATION OF THE ISSUE AND CIRCULATION OF CORPORATE BONDS IN EASTERN EUROPE

2021 ◽  
Author(s):  
Dariia Vasylieva ◽  
Keyword(s):  
Eastern Europe ◽  
Information Disclosure ◽  
Corporate Bonds ◽  
Regulatory Reform ◽  
Bond Market ◽  
Corporate Bond ◽  
Bond Markets ◽  
Bond Issue ◽  
Corporate Bond Market ◽  
Policy Initiatives

The formation and development of the corporate bond market is influenced by global regulatory reform and other government policy initiatives that affect all financial markets. Political, legislative, regulatory and fiscal changes must be well adapted to support the viability of corporate bond markets (both domestic and international). Financial market policy in general should not slow down bond markets, but should ensure optimal interaction between investors and issuers. Historical examples show how regulation, legislation, and other aspects of public policy can stimulate or slow down corporate bond markets. Currently, access to bond markets is limited for most companies due to the high cost of issuance, but the corporate bond market continues to expand. Regulation of the corporate bond market is a key factor that determines the possibility of attracting financial resources through this debt instrument from domestic and foreign investors. In this respect, it is important to pay attention not only to the issue of specific new regulatory and policy initiatives, but also to a careful review of the overall legal and regulatory framework. The purpose of the article is to systematize and analyze the legal framework for the issuance and circulation of corporate bonds in Eastern Europe. The article lists the main transactions in corporate bonds during their life cycle. The difference between the concepts of "corporate bond issue" and "corporate bond circulation" is substantiated. An analysis of the specifics of corporate bond regulation on the example of Ukraine, Bulgaria, Poland, Romania, Slovakia, Slovenia, Hungary and Croatia is carried out. The list of the basic laws of the countries of Eastern Europe regulating issue and circulation of corporate bonds is given. The common and distinctive features in the reporting and methods of information disclosure by corporate bond issuers in Ukraine and other Eastern European countries are analyzed. The structure of the corporate bond issue prospectus is determined. The main innovations in the Ukrainian legislation on the regulation of the issue and circulation of corporate bonds are analyzed.

scholarly journals Corporate bonds as a way of financing companies in the Republic of Serbia

Ekonomika ◽  
2021 ◽  
Vol 67 (4) ◽  
pp. 91-102
Author(s):  
Ljiljana Rajnović ◽  
Jonel Subić
Keyword(s):  
Stock Exchange ◽  
Corporate Bonds ◽  
Good Alternative ◽  
Bond Market ◽  
Corporate Bond ◽  
Corporate Bond Market ◽  
Sustainable Operation ◽  
Bond Issuers ◽  
The Republic

The security of sources of financing is of undoubted importance for the continuous and sustainable operation of economic entities, which is a long-term interest of persons interested in the operation of economic entities. In the structure of possible sources of financing of economic entities, corporate bonds are of great importance everywhere in the world, and their application in the Republic of Serbia could bring a great contribution to the domestic economy. Corporate bonds are debt obligations issued by corporation to debt refinancing, improvements, expansions or acquisitions. The bondholders are the issuer's creditors and for the money invested in the company, they expect earnings. The main goal of this paper is to consider the conditions and importance of issuing corporate bonds by medium and large companies in Serbia and the advantage over other sources of financing. Based on the obtained research results, it can be concluded that the issuance of bonds is a good alternative to other sources of financing the company's operations, but the corporate bond market in Serbia is in the development phase. Bond issuers with listing on the regulated market of the Belgrade Stock Exchange include, in addition to the state, only certain commercial banks and international financial organizations.

EFFECT OF STOCK MARKET CONCENTRATION ON THE GROWTH OF CORPORATE BOND MARKET IN KENYA

2017 ◽  
Vol 2 (2) ◽  
pp. 63
Author(s):  
Dr. David W. Wanyama
Keyword(s):  
Stock Market ◽  
Corporate Bonds ◽  
Secondary Data ◽  
Market Concentration ◽  
Bond Market ◽  
Corporate Bond ◽  
Unique Contribution ◽  
Policy Makers ◽  
Corporate Bond Market ◽  
Augmented Dickey Fuller

Purpose: The purpose of this study was to analyze how stock market concentration influences the growth of corporate bond market in Kenya.Methodology: The study used descriptive and causal research designs.  Secondary data was used. The sample of the study consisted of daily and monthly time series covering six years beginning January 2009 to December 2014. Unit root tests using Augmented Dickey-Fuller (ADF) and Phillips-Perron tests were done. The study used Eviews econometric software to facilitate empirical analysis of data.Results: Regression of coefficients results shows that stock market concentration and corporate bonds are positively and significant related (r=0.014, p=0.017).Unique Contribution to Theory, Practice and Policy: The study recommends that concerted efforts should be made to improve market concentration in the corporate bonds market so that it can operate optimally. The existing concentration affected the stock and corporate bond markets positively. However, policy makers should be careful not to allow a higher stock market concentration as this will adversely affect the financial markets (El-Wassal, 2013).

EFFECT OF STOCK MARKET DEVELOPMENT ON THE GROWTH OF CORPORATE BOND MARKET IN KENYA

2017 ◽  
Vol 2 (2) ◽  
pp. 16
Author(s):  
Dr. David W. Wanyama
Keyword(s):  
Stock Market ◽  
Corporate Bonds ◽  
Bond Market ◽  
Market Volatility ◽  
Corporate Bond ◽  
Market Development ◽  
Stock Market Volatility ◽  
Policy Makers ◽  
Stock Market Development ◽  
Corporate Bond Market

Purpose: The purpose of this study was to analyze how stock market development influences the growth of corporate bond market in Kenya.Methodology: The study used descriptive and causal research designs.  Secondary data was used. The sample of the study consisted of daily and monthly time series covering six years beginning January 2009 to December 2014. Unit root tests using Augmented Dickey-Fuller (ADF) and Phillips-Perron tests were done. The study used Eviews econometric software to facilitate empirical analysis of data.Results: Regression of coefficients results shows that Stock market size and corporate bonds are positively and significant related (r=0.029, p=0.002), stock market liquidity and corporate bonds are positively and significant related (r=8.291, p=0.0008), Stock Market Concentration and corporate bonds are positively and significant related (r=0.014, p=0.017). Regression of coefficients results shows that Stock Market Volatility and corporate bonds are positively and significant related (r=0.000023, p=0.0001).Unique Contribution to Theory, Practice and Policy: This study recommends study recommends for Policy makers to come up with measures to enhance the liquidity of the stock market which will in turn encourage investment in corporate bonds. The study recommends that concerted efforts should be made to improve market concentration in the corporate bonds market so that it can operate optimally. Policy makers should be aware of and monitor the level of stock market volatility that is appropriate for promoting the growth of the corporate bond markets and indeed other financial markets. Policy makers in Kenya should find ways and means of increasing the size of the stock market to reap the aforementioned benefits.

scholarly journals Markets: Transparency and the Corporate Bond Market

2008 ◽  
Vol 22 (2) ◽  
pp. 217-234 ◽  
Author(s):  
Hendrik Bessembinder ◽  
William Maxwell
Keyword(s):  
Corporate Bonds ◽  
Bond Market ◽  
National Association ◽  
Corporate Bond ◽  
Transaction Data ◽  
Corporate Bond Market ◽  
The Public ◽  
The Impact ◽  
The U.S ◽  
Trade Press

For decades, corporate bonds primarily traded in an opaque environment. Quotations, which indicate prices at which dealers are willing to transact, were available only to market professionals, most often by telephone. Prices at which bond transactions were completed were not made public. The U.S. corporate bond market became much more transparent with the introduction of the Transaction Reporting and Compliance Engine (TRACE) in July 2002. Beginning that date, bond dealers were required to report all trades in publicly issued corporate bonds to the National Association of Security Dealers, which in turn made transaction data available to the public. In this paper, we describe trading protocols in the corporate bond market and assess the impact of the increase in transparency on the market. We review how TRACE has affected the costs that corporate bond investors paid to bond dealers for their transactions. We canvass the opinions of a variety of finance professionals and consider articles in the trade press to obtain a broader view of the impact of transparency on the corporate bond market

Sign in / Sign up

Export Citation Format

Share Document