CORPORATE BOND PRICING IN INTERNATIONAL MARKETS

38290

In comparison to the globally high volume of corporate bonds, this instrument does not have a developed market in Turkey. When compared to the more favorable returns of common stock and government bonds, corporate bond issues remain at an insignificant level. Macro-economic indicators can potentially affect this result and also government issues have an advantage against private sector in terms of resource sharing. The most notewothy obstacle against the development of corporate bond market has been the existence of high inflation and interest rates. When the capital markets gain more depth, and as the interest rates are declining with more stable political and economic dynamics, private sector will likely to prefer bond issues as a financing alternative. Regulatory improvements to encourage corporate bond issues that started in 2006 are positive indicators for capital markets gaining depth. This paper analyzes the various characteristics of rated bonds over their pricing.

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Corporate bond , capital markets , fixed income securities , bond issues , bond pricing model

Journal Of Financial Researches an‎d Studies

52

Journal Of Financial Researches an‎d Studies