RT Journal Article
SR Electronic
T1 Global Debt Market Growth, Security Structure, and Bond Pricing
JF The Journal of Investing
FD Institutional Investor Journals
SP 79
OP 90
DO 10.3905/joi.2004.391045
VO 13
IS 1
A1 Khaled Amira
A1 William C. Handorf
YR 2004
UL https://pm-research.com/content/13/1/79.abstract
AB A global bond is a security simultaneously offered and sold in two or more geographic markets. Since the first issue of US$1.5 billion in 1989 by the World Bank, the market has expanded quickly to absorb more than 500 annual issues, and raise more than US $500 billion in one year. International investors, financiers, and managers should understand the global bond market if they are to effect better financial decisions to enhance economic and financial performance. The yield spread paid by debtors for fixed-rate, U.S. dollar-denominated global bonds is shown to be statistically related to the size of the bond (negative); the term to maturity (positive), the credit rating of the borrower (negative); the gross fees paid by the borrower (positive); and to whether the bond is issued in registered (positive) versus bearer form. These variables account for approximately 60% of the yield spread for global bonds issued between 1989 and 2001.