Investor activity in EFSF/ESM secondary bond markets

Hillebrand, Martin; Mravlak, Marko; Lorenz Breitsamter, Lorenz; Schwendner, Peter

Publication type:	Conference other
Type of review:	Peer review (abstract)
Title:	Investor activity in EFSF/ESM secondary bond markets
Authors:	Hillebrand, Martin Mravlak, Marko Lorenz Breitsamter, Lorenz Schwendner, Peter
et. al:	No
Conference details:	33rd European Conference on Operational Research (EURO), Copenhagen, Denmark, 30 June - 3 July 2024
Issue Date:	2-Jul-2024
Language:	English
Subjects:	Finanzmarkt; Europa; 2014-2020; Covid
Subject (DDC):	332.6: Investment
Abstract:	This study analyzes the secondary market dynamics of the European Financial Stability Facility (EFSF) and European Stability Mechanism (ESM) bonds from 2014 to 2020. Findings reveal increased activity of private sector investors, notably fund managers, with significant market risk exposure. The study examines the secondary bond market response to the initial impact of the COVID-19 crisis, observing investor behavior aligning with previous models of capital repatriation and subsequent re-entry. Additionally, it highlights a trend towards heightened activity in long-term market segments, spurred by a low yield environment, leading to the normalization of long maturities as liquid instruments. The paper also delves into the digitalization and automation of fixed income markets through electronic trading platforms, noting a gradual increase in electronic trading adoption, particularly among smaller ticket sizes. Despite this trend, central banks and public entities exhibit lower electronic trading shares, suggesting less pressure or motivation for adoption. Finally, the study explores the transaction network of primary dealers, revealing regional and institutional patterns that support liquidity maintenance strategies, emphasizing the role of local banks in stabilizing turnover volume and enhancing investor diversity across different trading platforms and countries.
URI:	https://digitalcollection.zhaw.ch/handle/11475/31162
Fulltext version:	Published version
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., Lorenz Breitsamter, L., & Schwendner, P. (2024, July 2). Investor activity in EFSF/ESM secondary bond markets. 33rd European Conference on Operational Research (EURO), Copenhagen, Denmark, 30 June - 3 July 2024.

Hillebrand, M. et al. (2024) ‘Investor activity in EFSF/ESM secondary bond markets’, in 33rd European Conference on Operational Research (EURO), Copenhagen, Denmark, 30 June - 3 July 2024.

M. Hillebrand, M. Mravlak, L. Lorenz Breitsamter, and P. Schwendner, “Investor activity in EFSF/ESM secondary bond markets,” in 33rd European Conference on Operational Research (EURO), Copenhagen, Denmark, 30 June - 3 July 2024, Jul. 2024.

HILLEBRAND, Martin, Marko MRAVLAK, Lorenz LORENZ BREITSAMTER und Peter SCHWENDNER, 2024. Investor activity in EFSF/ESM secondary bond markets. In: 33rd European Conference on Operational Research (EURO), Copenhagen, Denmark, 30 June - 3 July 2024. Conference presentation. 2 Juli 2024

Hillebrand, Martin, Marko Mravlak, Lorenz Lorenz Breitsamter, and Peter Schwendner. 2024. “Investor Activity in EFSF/ESM Secondary Bond Markets.” Conference presentation. In 33rd European Conference on Operational Research (EURO), Copenhagen, Denmark, 30 June - 3 July 2024.

Hillebrand, Martin, et al. “Investor Activity in EFSF/ESM Secondary Bond Markets.” 33rd European Conference on Operational Research (EURO), Copenhagen, Denmark, 30 June - 3 July 2024, 2024.