Corporate Pandemic Bonds

45 Pages Posted: 19 May 2020 Last revised: 20 Aug 2021

See all articles by Xiang Gao

Xiang Gao

University of North Dakota

Date Written: July 23, 2021


I examine corporate pandemic bonds, whose proceeds are committed to COVID-19 containing activities. I find an average cumulative abnormal return of 1.33–1.71% during the five trading days surrounding their issuance announcement. Also, their yield spread is 13.8–20.9 basis points lower than that of otherwise similar non-pandemic bonds. Additional evidence suggests that their issuances could facilitate COVID-19 containment. In mainland China, newly confirmed COVID-19 cases decrease by 1,217, recovered cases increase by 6,468, and the recovery rate increases by 6.9% following the issuance of a corporate pandemic bond.

Keywords: Corporate Bonds, Stock Returns, Pandemic, COVID-19, Yield Spreads, Corona Virus

JEL Classification: E44, G10, G12, G13, G32, H84, I10

Suggested Citation

Gao, Xiang, Corporate Pandemic Bonds (July 23, 2021). Available at SSRN: or

Xiang Gao (Contact Author)

University of North Dakota ( email )

Box 7096
Grand Forks, ND 58202
United States

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