Creation and Development of a Market: The Paris Corporate Bond Market in the 19th Century

13 Pages Posted: 13 May 2009 Last revised: 9 Oct 2011

See all articles by Amir Rezaee

Amir Rezaee

EDHEC Business School; University of Orleans - Laboratoire d'économie d'Orléans

Date Written: October 7, 2011

Abstract

This paper studies the French corporate bonds market during the 19th century. Despite its importance, the performance of the corporate bonds quoted on the Paris Bourse has never been studied. In order to analyse this market, a price index of the corporate bond market has been created by using modern techniques. The construction of the index is based on an original database created by new data collected directly from the publications of the market authorities during the nineteenth century. Thanks to the index, the risk and the return of the market have been measured. Then we compared the performance of French corporate bonds with those of stocks and government bonds The results show that during the nineteenth century, corporate bonds were the least risky equities of the Paris Bourse. To conclude, the impact of the government guarantee on corporate bonds is also assessed.

Keywords: Corporate Bonds, Bond market Index, Performance of Financial Markets

JEL Classification: C12, G14, G15, N23

Suggested Citation

Rezaee, Amir, Creation and Development of a Market: The Paris Corporate Bond Market in the 19th Century (October 7, 2011). Available at SSRN: https://ssrn.com/abstract=1403782 or http://dx.doi.org/10.2139/ssrn.1403782

Amir Rezaee (Contact Author)

EDHEC Business School ( email )

France

University of Orleans - Laboratoire d'économie d'Orléans ( email )

Rue de Blois BP6739
Rue de Blois
Orléans cedex 2, Centre 45067
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
129
Abstract Views
1,117
rank
303,531
PlumX Metrics