CORPORATE AND SOVEREIGN FINANCING IN THE EUROBOND MARKET: SOME KEY ISSUES

Abstract

In this article the author considers the previous importance of the Eurobond market for corporate and sovereign financing, corporate and sovereign Eurobonds issuing process, as well as costs and effects of corporate and sovereign financing in the Eurobond market. These four issues associated with corporate and sovereign financing in the Eurobond market are studied through exposing the relevant theoretical knowledge and results of empirical research. According to author’s findings, in developed countries the Eurobond market is more important for corporate than for sovereign financing. On the contrary, in developing countries the Eurobond market is more important for sovereign than for corporate financing. Most theoretical attitudes associated with the influence of different factors are grouped in three categories: issue characteristics, market factors and macroeconomic factors, as well as the influence of contagion on the cost of sovereign and corporate financing in the Eurobond market were empirically confirmed. Benefits of corporateandsovereignfinancingintheEurobondmarketare certainly large and risks can successfully be managed.