Interest rate risk management with debt issues: Evidence from Europe

Frédéric Délèze; Timo Korkeamäki

doi:10.1016/j.jfs.2018.01.003

Interest rate risk management with debt issues: Evidence from Europe

Frédéric Délèze
, Timo Korkeamäki^*

^*Tämän työn vastaava kirjoittaja

Ei julkaistu Aalto-yliopiston affiliaatiolla

Hanken School of Economics

Tutkimustuotos: Lehtiartikkeli › Article › Scientific › vertaisarvioitu

10 Viittaukset (Web of Science)

Abstrakti

In comparison to bank financing, public debt market may allow firms to more readily match maturity and risk structures between their assets and liabilities. We test whether new issuers on the European corporate bond markets experience a change in their interest rate sensitivity upon their bond issuance. We find that stock returns have become significantly less sensitive to interest rate fluctuations for firms that enter the publicly traded bond market. Our findings support the notion that firms manage their interest rate risk with new debt issues.

Alkuperäiskieli	Englanti
Sivut	1-11
Sivumäärä	11
Julkaisu	Journal of Financial Stability
Vuosikerta	36
DOI - pysyväislinkit	https://doi.org/10.1016/j.jfs.2018.01.003
Tila	Julkaistu - 1 kesäk. 2018
OKM-julkaisutyyppi	A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Rahoitus

We wish to thank Vikas Agarwal, Jan Antell, Bo Becker, Jess Cornaggia, Mike Faulkender, Iftekhar Hasan (editor), Esa Jokivuolle, Markku Kaustia, Lars Norden, James Vickery and anonymous referees seminar participants at the 2011 INFINITI conference in Dublin, Ireland and the 2012 FMA Meetings for helpful comments and suggestions. We also thank Annika Syrjänen for excellent research assistance. Financial support from the OP Pohjola Foundation is gratefully acknowledged.

Pääsy asiakirjaan

10.1016/j.jfs.2018.01.003

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Siteeraa tätä

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abstract = "In comparison to bank financing, public debt market may allow firms to more readily match maturity and risk structures between their assets and liabilities. We test whether new issuers on the European corporate bond markets experience a change in their interest rate sensitivity upon their bond issuance. We find that stock returns have become significantly less sensitive to interest rate fluctuations for firms that enter the publicly traded bond market. Our findings support the notion that firms manage their interest rate risk with new debt issues.",

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Interest rate risk management with debt issues: Evidence from Europe

Abstrakti

Rahoitus

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