Abstract
We examine the development of the high-yield corporate bond market in the U.S., UK, and the euro area. Our results suggest that the adoption of high-yield bonds is significantly affected by a number of macroeconomic variables and that high-yield bonds were diffused faster in Europe than in the U.S. These findings suggest that the adoption of new financial products depends on the macroeconomic environment and that the speed of their diffusion can be particularly fast when a pioneer country has already adopted the financial innovation.
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de Bondt, G., Ibáñez, D.M. High-Yield Bond Diffusion in the United States, the United Kingdom, and the Euro Area. J Finan Serv Res 27, 163–181 (2005). https://doi.org/10.1007/s10693-005-6667-x
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DOI: https://doi.org/10.1007/s10693-005-6667-x