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

See all articles by Manolis G. Kavussanos

Manolis G. Kavussanos

Athens University of Economics and Business - Department of Accounting and Finance

Dimitris A. Tsouknidis

University of Piraeus - Department of Maritime Studies

Date Written: May 1, 2014

Abstract

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

Kavussanos, Manolis G. and Tsouknidis, Dimitris A., The Determinants of Credit Spead Changes in Global Shipping Bonds (May 1, 2014). 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.. Available at SSRN: https://ssrn.com/abstract=2640579

Manolis G. Kavussanos

Athens University of Economics and Business - Department of Accounting and Finance ( email )

76 Patission St
TK 104 34 Athens
Greece
0030 210 8203167 (Phone)
0030 210 8228816 (Fax)

Dimitris A. Tsouknidis (Contact Author)

University of Piraeus - Department of Maritime Studies ( email )

80, Karaoli and Dimitriou str.
Piraeus, Attiki 18534
Greece

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