The Determinants of Credit Spead Changes in Global Shipping Bonds
Kavussanos, M.G., Tsouknidis, D.A., 2014. The determinants of credit spreads changes in global shipping bonds. Transportation Research Part E: Logistics and Transportation Review 70, 55-75.
45 Pages Posted: 7 Aug 2015
Date Written: May 1, 2014
This paper investigates whether bond, issuer, industry and macro-specific variables account for the observed variation of credit spreads’ changes of global shipping bond issues before and after the onset of the subprime financial crisis. Results show that conclusions as to the significant variables of spreads depend significantly on whether two-way cluster-adjusted standard errors are utilized, thus rendering results in the extant literature ambigious. The main determinants of global cargo-carrying companies’ shipping bond spreads are found in this paper to be: the liquidity of the bond issue, the stock market’s volatility, the bond market’s cyclicality, freight earnings and the credit rating of the bond issue.
Keywords: Bond Spreads; Shipping Finance; Panel Data; Two-way clustered standard errors; Shipping.
JEL Classification: G21, G32, G33, E32
Suggested Citation: Suggested Citation