European corporate bond market integration: lessons from EMU

Avadanei, Andreea (2010): European corporate bond market integration: lessons from EMU.

Abstract

Abstract: The scope of this article is to point out the features of European corporate bond market, in particular its development since the euro introduction. We structured our paper on chapters that present its economic importance, the implications of the common currency in respect to its growth and the level of integration in the present context. This market, including the debt securities issued by non-financial corporations, non-monetary financial corporations and monetary financial institutions, is economically important, as it contributes to the allocation of funds to their most profitable uses. Its rapid growth since the introduction of the euro can be explained by developments in economic activity, the costs of issuance and mergers &acquisitions-related activity. The adoption of the common currency had a direct and permanent effect on debt securities issued by non-monetary financial corporations. However, the use of corporate bonds at the euro area level is not uniform across countries. Country-specific factors continue to matter, despite the fact that financial markets are gradually becoming more integrated.

• Item Type: MPRA Paper
• Language: English
• Keywords: corporate bond market; euro; financial integration; economic importance; market segmentation.
• Subjects: F - International Economics > F1 - Trade > F15 - Economic Integration; G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency ; Event Studies ; Insider Trading; G - Financial Economics > G2 - Financial Institutions and Services > G29 - Other; G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General

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