Understanding corporate bond market dynamics in the post-crisis era and its roll in financing smaller growth companies
Since the global financial crisis of 2008, corporate bonds have become an increasingly important source of financing for non-financial companies. Two main factors have been at play in this trend: the decrease in bank lending to non-financial companies and the historically low levels of interest rates. From being a negligible source of external finance a decade ago, the outstanding stock of corporate bonds has reached significant levels also in emerging economies. However, with a few exceptions, the corporate bond markets are still dominated by large non-financial companies worldwide.
In this joint research project between the Karl-Adam Bonnier Foundation and the OECD, the research team studies post-crisis trends, the functioning of corporate bond markets globally and the developments with respect to bondholder rights, as well as small firms’ use of corporate bond markets. The project runs during 2018-2020 and is carried out by Mats Isaksson, Serdar Çelik, and Dr. Gül Demirtaş.
Mats Isaksson Head of the Corporate Affairs Division, OECD
Serdar Çelik Senior Economist, OECD
Gül Demirtaş Visiting Researcher, Sabanci University