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Working Paper No. 305: Liquidity risk and yield spreads of green bonds

PublicationWorking paper
Andreas Stephan, Dorothea Schäfer, Företagandets villkor, Innovation, Jönköping International Business School, Nationalekonomi
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Abstract

This study analyses how liquidity risk affects bonds’ yield spreads after controlling
for credit risk, bond-specific characteristics and macroeconomic variables. Using
two liquidity estimates, LOT liquidity and the bid-ask spread, we find that, in particular, the LOT liquidity measure has explanatory power for the yield spread of
green bonds. Overall, however, the impact of LOT decreases over time, implying
that, nowadays liquidity risk is negligible for green bonds.

Febi, W., Schäfer, D., Stephan, A., & Sun, C. (2018). Liquidity risk and yield spread of green bonds. Ratio Working Paper No. 305. Stockholm: Ratio.

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Working Paper No. 305: Liquidity risk and yield spreads of green bonds
Working paperPublication
Wulandari, F, Schäfer, D, Stephan, A, Sun, C
Publication year

2017

Published in

Ratio Working Paper

Abstract

This study analyses how liquidity risk affects bonds’ yield spreads after controlling
for credit risk, bond-specific characteristics and macroeconomic variables. Using
two liquidity estimates, LOT liquidity and the bid-ask spread, we find that, in particular, the LOT liquidity measure has explanatory power for the yield spread of
green bonds. Overall, however, the impact of LOT decreases over time, implying
that, nowadays liquidity risk is negligible for green bonds.

Working Paper No. 305: Liquidity risk and yield spreads of green bonds
Working paperPublication
Wulandari, F, Schäfer, D, Stephan, A, Sun, C
Publication year

2017

Published in

Ratio Working Paper

Abstract

This study analyses how liquidity risk affects bonds’ yield spreads after controlling
for credit risk, bond-specific characteristics and macroeconomic variables. Using
two liquidity estimates, LOT liquidity and the bid-ask spread, we find that, in particular, the LOT liquidity measure has explanatory power for the yield spread of
green bonds. Overall, however, the impact of LOT decreases over time, implying
that, nowadays liquidity risk is negligible for green bonds.

Ratio Working Paper No. 349: Industrial conflict in essential services in a new era – Swedish rules in a comparative perspective
Working paperPublication
Karlson, N.
Publication year

2021

Published in

Ratio Working Paper

Abstract

This paper examines whether the Swedish regulatory system of dealing with industrial conflicts that affect essential services need an update or reform. Are the existing rules effective in a world where many essential services are upheld by many interdependent agents in complex systems where every single node becomes critical for the functioning of the system, and where the essential service activities could be either private or public? A comparative study is conducted with the corresponding regulatory systems of the United Kingdom, Germany, and Denmark.
The conclusion is that Sweden is a special case. The Swedish protection against and readiness in dealing with societally harmful industrial conflicts in essential services is weaker than in the countries of comparison. Just as in relation to other threats to essential services, it is not sustainable to claim that just because such a threat is not currently present, there would be no need for preparedness.
There are many alternative ways to handle this. Desirable methods should both prevent harmful conflicts from erupting and end conflicts that have grown harmful to society at a later stage. The labour market organisations should have a mutual interest in reforming the rules.

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