Economic uncertainty and credit risk: evidence from international corporate bonds

Patricio Valenzuela; Javier Mella; Juan Claveria

doi:10.1016/j.econlet.2024.111666

Economic uncertainty and credit risk: evidence from international corporate bonds

Patricio Valenzuela^*, Javier Mella, Juan Claveria

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

3 Scopus citations

Abstract

Credit spreads are positively associated with economic policy uncertainty. This association is stronger in developing countries and countries with French-origin legal systems and worse sovereign credit ratings. This relation is also stronger for firms that usually face worse credit conditions.

Original language	English
Article number	111666
Pages (from-to)	1-4
Number of pages	4
Journal	Economics Letters
Volume	237
DOIs	https://doi.org/10.1016/j.econlet.2024.111666
State	Published - Apr 2024

Bibliographical note

Publisher Copyright:
© 2024

Keywords

Bond spreads
Credit ratings
Default risk
Uncertainty

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10.1016/j.econlet.2024.111666

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title = "Economic uncertainty and credit risk: evidence from international corporate bonds",

abstract = "Credit spreads are positively associated with economic policy uncertainty. This association is stronger in developing countries and countries with French-origin legal systems and worse sovereign credit ratings. This relation is also stronger for firms that usually face worse credit conditions.",

keywords = "Bond spreads, Credit ratings, Default risk, Uncertainty",

author = "Patricio Valenzuela and Javier Mella and Juan Claveria",

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year = "2024",

month = apr,

doi = "10.1016/j.econlet.2024.111666",

language = "English",

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T2 - evidence from international corporate bonds

AU - Valenzuela, Patricio

AU - Mella, Javier

AU - Claveria, Juan

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N2 - Credit spreads are positively associated with economic policy uncertainty. This association is stronger in developing countries and countries with French-origin legal systems and worse sovereign credit ratings. This relation is also stronger for firms that usually face worse credit conditions.

AB - Credit spreads are positively associated with economic policy uncertainty. This association is stronger in developing countries and countries with French-origin legal systems and worse sovereign credit ratings. This relation is also stronger for firms that usually face worse credit conditions.

KW - Bond spreads

KW - Credit ratings

KW - Default risk

KW - Uncertainty

UR - https://www.scopus.com/pages/publications/85188584357

U2 - 10.1016/j.econlet.2024.111666

DO - 10.1016/j.econlet.2024.111666

M3 - Article

AN - SCOPUS:85188584357

SN - 0165-1765

VL - 237

SP - 1

EP - 4

JO - Economics Letters

JF - Economics Letters

M1 - 111666

ER -

Economic uncertainty and credit risk: evidence from international corporate bonds

Abstract

Bibliographical note

Keywords

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