Upcoming Seminars & Events1

Boosted Credit Ratings in China: The Effects of Credit Enhancement on Bond Pricing

Publish Time:2020-12-16

Date & Time:Dec. 21, 2020   10:00- 11:30am

Venue:SEM 320

Speaker:Haoyu Gao(Renmin University of China

Abstract:  

More than 25% of credit bonds in China received improved issuance ratings, among which 96.6% used credit enhancement. We find that credit enhancement can effectively lower credit spreads, which still holds after a battery of robustness tests. We employ the propensity score matching method, the instrumental variable approach, and firm-year fixed effects to address endogeneity. The risk reduction and loss sharing mechanisms are identified empirically; information production and liquidity improvement channels are excluded. Our results suggest that credit enhancement usage provides a market solution for low-rated firms to issue high-rated bonds and lower the cost of debt financing.


Speaker Biography:  

高昊宇博士, 中国人民大学副教授, 博士生导师,汉青经济与金融高级研究院金融系系主任, 中国人民大学杰出学者青年学者, 5届中国科协青年人才托举工程入选人. 研究兴趣集中在公司金融, 金融市场中介, 中国资本市场, 绿色金融, 银行与风险管理等方面. 学术成果已经发表或接受发表在Review of Financial Studies(RFS), Journal of Financial Economics(JFE), Journal of Financial and Quantitative Analysis(JFQA), Journal of Financial Services Research(JFSR),《金融研究》,《中国管理科学》《系统科学与数学》等国内外主流金融学和管理学期刊. 另有论文在《经济研究》, 《管理科学学报》等杂志返修中. 他的论文还曾获得12届亚太金融市场年会、31届亚洲金融学年会、第8届投资学年会和第18届金融系统工程与风险管理年会等最佳论文奖。他的学术兼职有金融科技教育与研究50人论坛青年成员, 中国运筹学会金融工程与金融风险管理分会理事, 中国优选法统筹法与经济数学研究会量化金融与保险分会理事,美国金融学会会员和中国系统工程学会会员等。此外,他主持一项国家自然科学基金项目,参与多项国家自然科学基金重点项目,多次受邀参加广西壮族自治区发改委和地方金融监管局、中国银保监会、国家开发银行、中国银行、东方资产管理公司等合作课题项目。