The Resilience of the U.S. Corporate Bond Market During Financial Crises / Bo Becker, Efraim Benmelech.

Format:

Book

Author/Creator:

Becker, Bo.

Contributor:

National Bureau of Economic Research.

Benmelech, Efraim.

Series:

Working Paper Series (National Bureau of Economic Research) no. w28868.

NBER working paper series no. w28868

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2021.

Summary:

Corporate bond markets proved remarkably resilient against a sharp contraction caused by the 2020 Covid-19 pandemic. We document three important findings: (1) bond issuance increased immediately when the contraction hit, whereas, in contrast, syndicated loan issuance was low; (2) Federal Reserve interventions increased bond issuance, while loan issuance also increased, but to a lesser degree; and (3) bond issuance was concentrated in the investment-grade segment for large and profitable issuers. We compare these results to previous crises and recessions and document similar patterns. We conclude that the U.S. bond market is an important and resilient source of funding for corporations.

Notes:

Print version record

May 2021.