The recession of 2008-2009 showcased the critical role that the corporate bond market plays in providing firms with access to capital, a role reflected by a 300% increase in corporate bonds issued from $600 billion issued in 2007 to $1.8 trillion issued in 2012. In this study, I investigate the bond specific, firm specific and macroeconomic factors that explain the change in corporate credit spreads within the Consumer Staples industry between 2005 and 2013. The results show that the firm specific variables, debt and total assets, have the largest impact on the corporate credit spreads. However, there is a weaker relationship between the variables and the corporate credit spread during recessionary times.
Business | Finance and Financial Management | Portfolio and Security Analysis
Mayberger, Michael, "How do bond specific, firm specific and macroeconomic factors influence corporate credit spreads?" (2014). Honors Projects. 30.