Issue Frequency and Corporate Bond Yields

36 Pages Posted: 7 Jul 2006

See all articles by Abe de Jong

Abe de Jong

Rotterdam School of Management, Erasmus University; Monash University

Willem Schramade

RSM Erasmus University; Sustainable Finance Factory

Peter Roosenboom

Rotterdam School of Management, Erasmus University; Erasmus Research Institute of Management (ERIM)

Date Written: June 22, 2006

Abstract

This paper finds that frequent bond issuers get significantly better pricing than infrequent issuers, with yield spread discounts of up to 117 basispoints. We document firms' bond issue frequencies for windows from one week to six years before the current issue and relate them to yield spreads. For very large firms, issue frequency in windows up to one year matters most, which is consistent with benefits through increasing market literacy. Reputation acquisition seems more relevant for regular firms, as it is beneficial for them to be a recent issuer. The results suggest there is a firm-specific optimal issue frequency.

Keywords: yields, bonds, security issuing

JEL Classification: G20, G24, G30

Suggested Citation

de Jong, Abe and Schramade, Willem and Roosenboom, Peter, Issue Frequency and Corporate Bond Yields (June 22, 2006). Available at SSRN: https://ssrn.com/abstract=912505 or http://dx.doi.org/10.2139/ssrn.912505

Abe De Jong

Rotterdam School of Management, Erasmus University ( email )

P.O. Box 1738
Room T08-25
Rotterdam, 3000 DR
Netherlands
+31 10 408 1022 (Phone)

HOME PAGE: http://https://www.rsm.nl/people/abe-de-jong/

Monash University ( email )

900 Dandenong Rd
Room H3-56
Caulfield East, Victoria 3145
Australia

HOME PAGE: http://https://research.monash.edu/en/persons/abe-de-jong

Willem Schramade (Contact Author)

RSM Erasmus University ( email )

P.O. Box 1738
Room T09-53
3000 DR Rotterdam
Netherlands

Sustainable Finance Factory ( email )

18
Rotterdam, 3034 SG
0682011037 (Phone)

Peter Roosenboom

Rotterdam School of Management, Erasmus University ( email )

P.O. Box 1738
Room T09-56
3000 DR Rotterdam
Netherlands
+31 10 40 82255 (Phone)

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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