GLOBALNO TRŽIŠTE KORPORATIVNIH OBVEZNICA

In this paper, the author presents the situation in the global corporate bond market. Highlights the three largest corporate bond markets in the world - the US, China and the EU market. In the corporate bond market, mostly medium and large companies borrow, while this is much less often the case with small and medium enterprises. A developed and liquid corporate bond market is extremely important because it provides capital for investments, job financing and economic growth. The liquidity of this market has been called into question with the crisis 2007/2008 and the recession in which economies around the world found themselves. In order to help their economies and get them out of the crisis, and to provide capital to finance companies for business ventures, the states have also taken on an important role. The corporate bond market is reviving after the global financial crisis of 2007/2008, and is supported by unconventional monetary policy measures of some central banks in order to ensure the recovery of economies in crisis and provide the necessary liquidity.

Monte Carlo Valuation of Corporate Bonds Using Price Data

<p>Corporate debt securities play a large part in financial markets and hence accurate modeling of the prices of these securities is integral. Ericsson and Reneby (2005) state that the corporate bond market in the US doubled between 1995 and 2005 and is now larger than the market for US treasuries. Although the theoretical corporate bond pricing literature is vast, very little empirical research to test the effectiveness of these models has been published. Corporate bond pricing models are split into two families of models. The first, are the structural models which endogenise default by modeling it as an event that may eventuate due to the insolvency of the underlying firm. The second family of models is the newer class of reduced-form models that exogenise default by modeling it as some random process (default intensity). The reduced-form models have been formulated largely due to the empirical failures of the structural family to accurately model prices and spreads. However as Ericsson and Reneby (2005) point out, an inadequate estimation approach may explain the poor performance of the structural models. Structural models are, therefore, the focus of this paper. We, however, do estimate a reduced-form model in order to make a comparison between the two types of model. There are no published papers (to my knowledge) in which both types of model are implemented ...</p>

Monte Carlo Valuation of Corporate Bonds Using Price Data

<p>Corporate debt securities play a large part in financial markets and hence accurate modeling of the prices of these securities is integral. Ericsson and Reneby (2005) state that the corporate bond market in the US doubled between 1995 and 2005 and is now larger than the market for US treasuries. Although the theoretical corporate bond pricing literature is vast, very little empirical research to test the effectiveness of these models has been published. Corporate bond pricing models are split into two families of models. The first, are the structural models which endogenise default by modeling it as an event that may eventuate due to the insolvency of the underlying firm. The second family of models is the newer class of reduced-form models that exogenise default by modeling it as some random process (default intensity). The reduced-form models have been formulated largely due to the empirical failures of the structural family to accurately model prices and spreads. However as Ericsson and Reneby (2005) point out, an inadequate estimation approach may explain the poor performance of the structural models. Structural models are, therefore, the focus of this paper. We, however, do estimate a reduced-form model in order to make a comparison between the two types of model. There are no published papers (to my knowledge) in which both types of model are implemented ...</p>

Dealer Inventory Constraints in the Corporate Bond Market during the COVID Crisis

Beginning in late February 2020, market liquidity for corporate bonds dried up and corporate bond credit spreads soared amid broad financial market dislocations related to the COVID-19 pandemic. The causes of this liquidity dry-up and the spike in corporate bond spreads remain subjects of debate.

FINANSIRANjE PREDUZEĆA EMISIJOM KORPORATIVNIH OBVEZNICA

The corporate bond market contributes to the development of the financial market, its infrastructure, and affects economic growth. In developed countries, corporate bond issuance is a very common way of borrowing by the corporate sector. In developing countries, this method of borrowing is used "shyly" because companies most often turn to banks for help. In addition, the inflow of FDI in these countries contributes to meeting the financial needs of the corporate sector, thus reducing the need for bond issues. The paper compares borrowing by issuing corporate bonds and bank loans, explains the forms of issue of these securities, rating bonds, the secondary market of corporate bonds and briefly presents the picture of the corporate bonds market of Republic of Serbia.

Developing the Corporate Bond market- International Experience and Lessons for Vietnam Companies

Vietnam is in the process of developing into a middle-income country in the world. The widespread epidemic of covid-19 has had a negative impact on most Vietnam enterprises. However, the Vietnamese government's success in disease control has contributed to the recovery of business performance and efficiency. Vietnamese enterprises used to mobilize capital mainly through banking channels. In recent times, bonds are an important long-term capital mobilization tool for businesses, helping businesses reduce their dependence on commercial banks. This article mentions the development of the Vietnamese corporate bond market based on the experiences of several countries around the world.