Investor demand in syndicated bond issuances : stylised facts

Hillebrand, Martin; Mravlak, Marko; Schwendner, Peter

doi:10.2852/793259

Publication type:	Working paper – expertise – study
Title:	Investor demand in syndicated bond issuances : stylised facts
Authors:	Hillebrand, Martin Mravlak, Marko Schwendner, Peter
et. al:	No
DOI:	10.2852/793259
Extent:	20
Issue Date:	2021
Series:	Working Paper Series
Series volume:	50
Publisher / Ed. Institution:	European Stability Mechanism
ISBN:	978-92-95223-11-0
ISSN:	2443-5503
Language:	English
Subjects:	Investor demand; Bond issuance; Bond primary market; Bond syndication
Subject (DDC):	332.6: Investment
Abstract:	This study analyses investor demand in syndicated EFSF and ESM bond issuances from 2014 to 2020 on an unprecedented granularity level of individual orders. In particular, we investigate three main aspects of order book dynamics: first, we determine the main factors segmenting investor demand. Second, we analyse price dynamics in the transactions and its relation to investor demand. Third, we examine whether there are any indications of order book inflation that might explain the increased volatility in order book volume. We identify issuance tranche and tenor as the main determinants of investor demand, which are to a large extent anticipated by the envisaged notional amount of the issuance. Further, we note that the pricing of ESM bond issuances is carried out in an economical manner, i.e. the new issue premium tends to be lower in a market context with large demand. Lastly, we look at the drivers of large order books and find a mixture of above average number and volume of orders. This confirms that there are no indications of order book inflation tendencies in the analysed time period.
URI:	https://www.esm.europa.eu/sites/default/files/ESM_WP_50%20(01-22).pdf https://digitalcollection.zhaw.ch/handle/11475/24057
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Institute of Wealth & Asset Management (IWA)
Appears in collections:	Publikationen School of Management and Law

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Hillebrand, M., Mravlak, M., & Schwendner, P. (2021). Investor demand in syndicated bond issuances : stylised facts. European Stability Mechanism. https://doi.org/10.2852/793259

Hillebrand, M., Mravlak, M. and Schwendner, P. (2021) Investor demand in syndicated bond issuances : stylised facts. European Stability Mechanism. Available at: https://doi.org/10.2852/793259.

M. Hillebrand, M. Mravlak, and P. Schwendner, “Investor demand in syndicated bond issuances : stylised facts,” European Stability Mechanism, 2021. doi: 10.2852/793259.

HILLEBRAND, Martin, Marko MRAVLAK und Peter SCHWENDNER, 2021. Investor demand in syndicated bond issuances : stylised facts [online]. European Stability Mechanism. Verfügbar unter: https://www.esm.europa.eu/sites/default/files/ESM_WP_50%20(01-22).pdf

Hillebrand, Martin, Marko Mravlak, and Peter Schwendner. 2021. “Investor Demand in Syndicated Bond Issuances : Stylised Facts.” European Stability Mechanism. https://doi.org/10.2852/793259.

Hillebrand, Martin, et al. Investor Demand in Syndicated Bond Issuances : Stylised Facts. European Stability Mechanism, 2021, https://doi.org/10.2852/793259.