Segnalazione da ECB Research Bulletin: “Bonds at a premium: the impact of insurers on corporate bond issuers”

 (...) the latest issue (No. 110) of the ECB Research Bulletin, entitled “Bonds at a premium: the impact of insurers on corporate bond issuers”.

Christian Kubitza (Senior Economist, Directorate General Research, European Central Bank) examines how shifts in investors’ demand for corporate bonds affect non-financial bond issuers. When demand for their bonds increases, firms’ financing costs decrease, which encourages them to increase their bond debt and invest more. These effects crucially depend on how credit-constrained firms are. The findings emphasise the critical role that institutional investors play in shaping non-financial firms’ financing decisions and real economic activity.

The ECB Research Bulletin features a selection of recent work on policy-relevant topics by ECB economists. Published on a monthly basis, the articles in the Research Bulletin are intended for a general audience. The views expressed in each article are those of the authors and do not necessarily represent the views of the European Central Bank and the Eurosystem. (...)