Do Collective Action Clauses Influence Bond Yields? New Evidence from Emerging Markets

2003 ◽  
Author(s):  
Anthony J. Richards ◽  
Mark Gugiatti
Keyword(s):  
Collective Action ◽  
Emerging Markets ◽  
Bond Yields ◽  
Collective Action Clauses ◽  
New Evidence

Do Collective Action Clauses Influence Bond Yields? New Evidence from Emerging Markets

2003 ◽  
Vol 6 (3) ◽  
pp. 415-447 ◽  
Author(s):  
Anthony Richards ◽  
Mark Gugiatti
Keyword(s):  
Collective Action ◽  
Emerging Markets ◽  
Bond Yields ◽  
Collective Action Clauses ◽  
New Evidence

scholarly journals Restructuring Sovereign Debt

2003 ◽  
Vol 17 (4) ◽  
pp. 75-98 ◽  
Author(s):  
Barry Eichengreen
Keyword(s):  
Collective Action ◽  
Financial Markets ◽  
Empirical Evidence ◽  
Sovereign Debt ◽  
Emerging Market ◽  
International Community ◽  
Collective Action Clauses ◽  
Debt Crises ◽  
New Evidence ◽  
The Way

This paper provides new empirical evidence relevant to the debate over the desirability of reforms to the way that financial markets and the international community deal with sovereign debt crises. In particular, given the ongoing opposition of investors and some sovereigns to greater use of collective action clauses (CACs) in emerging market bonds, we present new evidence on the way that financial markets have priced the use or non-use of CACs.

Collective action clauses: How do they affect sovereign bond yields?

2014 ◽  
Vol 92 (2) ◽  
pp. 286-303 ◽  
Author(s):  
Alfredo Bardozzetti ◽  
Davide Dottori
Keyword(s):  
Collective Action ◽  
Bond Yields ◽  
Sovereign Bond ◽  
Collective Action Clauses

Estimating Time-Varying Currency Betas: New Evidence from Nine Developed and Emerging Markets

2013 ◽  
Author(s):  
Ling Long ◽  
Albert K.C. Tsui ◽  
Zhaoyong Zhang
Keyword(s):  
Emerging Markets ◽  
Time Varying ◽  
New Evidence

Do Collective Action Clauses Affect Income Growth?

2006 ◽  
Author(s):  
Julius Vizner
Keyword(s):  
Collective Action ◽  
Income Growth ◽  
Collective Action Clauses

scholarly journals The Impact of the Introduction of Uniform European Collective Action Clauses on European Government Bonds as a Regulatory Result of the European Sovereign Debt Crisis

2020 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Nicoletta Layher ◽  
Eyden Samunderu
Keyword(s):  
European Union ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
The European Union ◽  
Bond Yields ◽  
Member States ◽  
Sovereign Bond ◽  
European Sovereign Debt Crisis ◽  
Collective Action Clauses

This paper conducts an empirical study on the inclusion of uniform European Collective Action Clauses (CACs) in sovereign bond contracts issued from member states of the European Union, introduced as a regulatory result of the European sovereign debt crisis. The study focuses on the reaction of sovereign bond yields from European Union member states with the inclusion of the new regulation in the European Union. A two-stage least squares regression analysis is adopted in order to determine the extent of impact effects of CACs on member states sovereign bond yields. Evidence is found that CACs in the European Union are priced on financial markets and that sovereign bond yields do respond to the inclusion of uniform CACs in the European Union.

scholarly journals Do Investors Pay Yield Premiums On Green Bonds?

2020 ◽  
Vol 14 (2) ◽  
pp. 7-21
Author(s):  
Anna Mikhaylova ◽  
Irina Ivashkovskaya
Keyword(s):  
Emerging Markets ◽  
Large Scale ◽  
High Growth ◽  
Bond Market ◽  
Environmental Concerns ◽  
Public Authorities ◽  
Developed Markets ◽  
Financial Research ◽  
New Evidence ◽  
Bid Ask Spreads

Global shifts in perspectives on environmental concerns and the growing significance of large-scale sustainabilityprograms have brought the issue of green financing to the fore of financial research. In terms of volume, this area hasdemonstrated high growth rates in various types of capital markets.Unfortunately, few studies exist which explore the yields on green bonds in emerging markets in comparison todeveloped ones. As such, in this paper, we contribute new evidence to the field of green financing and outline severalmajor differences between green issues in these types of capital markets.We study yield premiums of green bonds on a sample of 2,450 green issues and comparable traditional bonds over theperiod from 2008 to March 2020. We contribute to the literature by new empirical evidence on green financing.Our results provide evidence of small but statistically significant negative premiums on green bonds of 23,4%1 comparedto the expected yields for standard issues. We also show that the negative premium on green bonds is more pronouncedin developed markets (- 27%2) than in emerging ones (18%3). Moreover, we provide new evidence on the negativepremium-liquidity relationship. Our research concludes that negative premiums are related to a higher level of liquidity:green bonds have lower bid-ask spreads and a higher level of liquidity than traditional ones.These conclusions can assist investors, potential issuing companies, and public authorities in achieving a betterunderstanding of the current situation of the green bond market in global terms.

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