Corporate Pandemic Bonds

54 Pages Posted: 19 May 2020 Last revised: 20 Jan 2022

See all articles by Xiang Gao

Xiang Gao

Loyola University Chicago

Date Written: May 1, 2020


We examine corporate pandemic bonds whose proceeds are, at least partly, committed to COVID-19 containing activities. We find an average cumulative abnormal stock return of 1.33–1.71% surrounding their issuance announcement. Their yield spread is 8.9–18 basis points lower than that of otherwise similar non-pandemic bonds. Additional evidence suggests that our findings are because (1) pandemic bonds can facilitate COVID-19 containment and (2) the government encourages state-owned investors to participate in pandemic bond issuances.

Funding Information: None to declare.

Conflict of Interests: None to declare.

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

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

Suggested Citation

Gao, Xiang, Corporate Pandemic Bonds (May 1, 2020). Available at SSRN: or

Xiang Gao (Contact Author)

Loyola University Chicago ( email )


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