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Research Seminars

Virtual seminar: Olivier Darmouni - Columbia Business School

Wednesday, 10 November 2021
14:00 to 15:20
Olivier Darmouni
Virtual event

Topic: Bond Market Stimulus: Firm-Level Evidence from 2020-21

As part of the External Economics and Finance Seminar Series in collaboration with Centre for Banking, Institutions and Development (CBID)

Abstract:

Using micro-data on corporate balance sheets, we study firm behavior in the wake of the unprecedented policy support to the corporate bond market in 2020. We provide evidence that, contrary to good times, bond issuers increased holdings of liquid assets rather than real investment. Moreover, even though the crisis did not originate in the banking sector, bonds were revealed preferred to bank loans: many issuers left their bank credit lines untouched, while others used bond proceeds to repay existing bank loans. Finally, many bond issuers carried substantial shareholder payouts during the year. These patterns imply that real effects might not have been as large as what the spectacular market rebound suggests.

Click here for more information on Olivier Darmouni.

Virtual seminar: Olivier Darmouni - Columbia Business School

Wednesday, 10 November 2021
14:00 to 15:20
Olivier Darmouni
Virtual event

Topic: Bond Market Stimulus: Firm-Level Evidence from 2020-21

As part of the External Economics and Finance Seminar Series in collaboration with Centre for Banking, Institutions and Development (CBID)

Abstract:

Using micro-data on corporate balance sheets, we study firm behavior in the wake of the unprecedented policy support to the corporate bond market in 2020. We provide evidence that, contrary to good times, bond issuers increased holdings of liquid assets rather than real investment. Moreover, even though the crisis did not originate in the banking sector, bonds were revealed preferred to bank loans: many issuers left their bank credit lines untouched, while others used bond proceeds to repay existing bank loans. Finally, many bond issuers carried substantial shareholder payouts during the year. These patterns imply that real effects might not have been as large as what the spectacular market rebound suggests.

Click here for more information on Olivier Darmouni.