Impact of country risk & sovereign credit rating on corporate bond yields of Singapore

This internship report is submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration, 2020.

Bibliografiska uppgifter
Huvudupphovsman: Nath, Bappy Kumar
Övriga upphovsmän: Ahmed, Riyashad
Materialtyp: Internship report
Språk:English
Publicerad: Brac University 2021
Ämnen:
Länkar:http://hdl.handle.net/10361/15238
id 10361-15238
record_format dspace
spelling 10361-152382021-10-13T21:01:22Z Impact of country risk & sovereign credit rating on corporate bond yields of Singapore Nath, Bappy Kumar Ahmed, Riyashad Brac Business School, Brac University Singapore Country risk Sovereign credit rating Corporate bond Bonds This internship report is submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration, 2020. Cataloged from PDF version of internship report. Includes bibliographical references (pages 21-22). This research paper examines the impact of country risk and sovereign credit rating on corporate bond market yields of Singapore for a time frame of August 2010 to December 2019. A good composite country risk score & sovereign credit rating help better private capital inflow in a country. As sovereign bonds are less risky than corporate bonds, it is essential to perform respective risk analysis before investing in corporate bonds for better yield expectations by institutional & retail investors. Singapore being a good rated and less risky country for several consecutive years, has increasingly becoming popular as a first choice for private investments among Asian countries. For investigating the impact of country risk & sovereign credit rating on corporate bond yields of Singapore, moderating variables- GDP growth rate of Singapore, annual inflation percentage change, current account balance to GDP are added in the analysis. Previous studies found that bond yield holds negative correlation with sovereign credit rating, current account balances & inflation rate. However, as the rating didn’t fluctuate for chosen time period of Singapore, conclusion couldn’t be drawn in this regard. But negative correlation with current account balances has been found similar in case of Singapore. The data of inflation proved to be statistically insignificant to conclude any relationship. It has been also evident that GDP growth rate formed negative association with corporate bond yields in case of Singapore which implies that as GDP grew, corporate bond yields flattened. Finally, country risk has been found negatively correlated with corporate bond yields signifying that as the country becomes riskier (ratings go higher), bond yields fell. Among the variables, country risk and GDP growth rate data proved to be statistically significant to draw these remarks. Bappy Kumar Nath M. Business Administration 2021-10-13T05:34:17Z 2021-10-13T05:34:17Z 2020 2020-09 Internship report ID 18364077 http://hdl.handle.net/10361/15238 en Brac University Internship reports are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. 25 pages application/pdf Brac University
institution Brac University
collection Institutional Repository
language English
topic Singapore
Country risk
Sovereign credit rating
Corporate bond
Bonds
spellingShingle Singapore
Country risk
Sovereign credit rating
Corporate bond
Bonds
Nath, Bappy Kumar
Impact of country risk & sovereign credit rating on corporate bond yields of Singapore
description This internship report is submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration, 2020.
author2 Ahmed, Riyashad
author_facet Ahmed, Riyashad
Nath, Bappy Kumar
format Internship report
author Nath, Bappy Kumar
author_sort Nath, Bappy Kumar
title Impact of country risk & sovereign credit rating on corporate bond yields of Singapore
title_short Impact of country risk & sovereign credit rating on corporate bond yields of Singapore
title_full Impact of country risk & sovereign credit rating on corporate bond yields of Singapore
title_fullStr Impact of country risk & sovereign credit rating on corporate bond yields of Singapore
title_full_unstemmed Impact of country risk & sovereign credit rating on corporate bond yields of Singapore
title_sort impact of country risk & sovereign credit rating on corporate bond yields of singapore
publisher Brac University
publishDate 2021
url http://hdl.handle.net/10361/15238
work_keys_str_mv AT nathbappykumar impactofcountryrisksovereigncreditratingoncorporatebondyieldsofsingapore
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