corporate bond market - a market instrument of financing the economy.Traditional bonds of the state savings loan is not able to ensure the effective development of this segment of the national economy.Currently there is no single recipe that would lead to the early formation of an effective sphere of circulation of corporate bonds, onismogli to replace, for example, bonds of internal state currency loan or other assets in a diversified market economy.However, already accumulated enough empirical evidence related to the formation and development of the national markets of corporate assets worldwide.
course, numerous acts of exempting from taxation income from the bonds of legal entities, as well as allowing include the costs of legal entities to issue bonds in the cost of production, could give impetus to the formation of the sphere of circulation of corporate bonds in the country.In this paper, on the basis of theoretical generalization of empirical facts, as well as from the standpoint of compliance with the economic characteristics of the market formulated the law of conservation of economic benefits in the primary market of corporate bonds, the model of functioning of corporate bonds.
long-term analysis of interest rates in developed and emerging markets debt has shown that, as well as all types of government securities, corporate securities in these markets have their place, and their yield is within the limited profitability of alternative instruments.
all types of government securities to limit the lower limit of the yield corporate bonds, as in its time structure (interest payment and maturity date of circulation) are closest to the interim payout structure of the bond issue.For the investor it is important that all kinds of government securities had a yield lower than corporate bonds by at least the amount of the risk premium that it was advantageous to buy corporate rather than government bonds.
The upper limit is determined by the profitability of the corporate bond interest rate on bank loans.When placing the bond issuer assumes the risk of non-placement of bonds for its proposed conditions, as measured by the yield.For the price of the issuer of the bond issue should be more attractive than the interest rate on bank loans to it was profitable to place a bond issue, and not to take bank loans.
acceptable for the market is the level of profitability of corporate bonds when the issuer to attract investors, offering a premium to the yield of state assets, but it takes at rates lower than those available sources of bank lending by the amount of DE.Therefore, a functioning market yield of corporate bonds should be within these boundaries.
To comply with the economic interests of all participants of the market yield of corporate bonds can not be lower than the one held by all kinds of government securities and the cost of the bond issue may not exceed the lending rate.In addition, the cost of the bond issue will always be higher than the yield of corporate bonds, since bond issue is related to additional expenses on issue, placement, circulation and redemption of corporate bonds.Finally, the profitability of the investor will be lower than the yield of corporate bonds in the amount related to tax payments.
