Importance of Reference Rates for Corporate Debt Issuance

 

 

Speaker: Patrick Verwijmeren, Erasmus University/University of Melbourne

 

We study the link between sovereign and corporate bond maturities in 14 economies over the period 1991 – 2017 and show that there is a reduction in gap filling when sovereign bonds fail to provide precise reference rates. The quasi-natural experiment provided by the introduction and suspension of sovereign bond issues that change the maximum tenor of reference rates shows that changes in sovereign bond maturity precede changes in the maturity of corporate bond issues. This relative timing is consistent with a reference rate effect quite distinct from any common omitted variable driving maturity changes.

Time: 12.00 – 1.00 p.m.

Venue:  University of Technology, Sydney

                Building 8, Room 8.002, Dr Chau Chak Wing Building
                Dr Chau Chak Wing Building

                14 - 28 Ultimo Road, Ultimo

 

 

Enquiries: Mala Kapahi (Ph: +61 2 9514 7777)