Economic uncertainty and credit risk: Evidence from international corporate bonds

Patricio Valenzuela; Javier Mella; Juan Claveria

doi:10.1016/j.econlet.2024.111666

Economic uncertainty and credit risk: Evidence from international corporate bonds

Patricio Valenzuela
, Javier Mella
, Juan Claveria

Research output: Contribution to journal › Article › peer-review

6 Scopus citations

Abstract

Credit spreads are positively associated with economic policy uncertainty. This association is stronger in developing countries and countries with French-origin legal systems and worse sovereign credit ratings. This relation is also stronger for firms that usually face worse credit conditions.

Original language	English
Article number	111666
Journal	Economics Letters
Volume	237
DOIs	https://doi.org/10.1016/j.econlet.2024.111666
State	Published - Apr 2024
Externally published	Yes

Keywords

Bond spreads
Credit ratings
Default risk
Uncertainty

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10.1016/j.econlet.2024.111666

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title = "Economic uncertainty and credit risk: Evidence from international corporate bonds",

abstract = "Credit spreads are positively associated with economic policy uncertainty. This association is stronger in developing countries and countries with French-origin legal systems and worse sovereign credit ratings. This relation is also stronger for firms that usually face worse credit conditions.",

keywords = "Bond spreads, Credit ratings, Default risk, Uncertainty",

author = "Patricio Valenzuela and Javier Mella and Juan Claveria",

note = "Publisher Copyright: {\textcopyright} 2024",

year = "2024",

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doi = "10.1016/j.econlet.2024.111666",

language = "English",

volume = "237",

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T2 - Evidence from international corporate bonds

AU - Valenzuela, Patricio

AU - Mella, Javier

AU - Claveria, Juan

PY - 2024/4

Y1 - 2024/4

N2 - Credit spreads are positively associated with economic policy uncertainty. This association is stronger in developing countries and countries with French-origin legal systems and worse sovereign credit ratings. This relation is also stronger for firms that usually face worse credit conditions.

AB - Credit spreads are positively associated with economic policy uncertainty. This association is stronger in developing countries and countries with French-origin legal systems and worse sovereign credit ratings. This relation is also stronger for firms that usually face worse credit conditions.

KW - Bond spreads

KW - Credit ratings

KW - Default risk

KW - Uncertainty

UR - https://www.scopus.com/pages/publications/85188584357

U2 - 10.1016/j.econlet.2024.111666

DO - 10.1016/j.econlet.2024.111666

M3 - Article

AN - SCOPUS:85188584357

SN - 0165-1765

VL - 237

JO - Economics Letters

JF - Economics Letters

M1 - 111666

ER -

Economic uncertainty and credit risk: Evidence from international corporate bonds

Abstract

Keywords

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