IDEAS home Printed from https://ideas.repec.org/p/boi/wpaper/2017.17.html
   My bibliography  Save this paper

Recovery rates in the Israeli corporate bond market 2008-2015

Author

Listed:
  • Ana Sasi-Brodesky

    (Bank of Israel)

Abstract

This paper examines default events in Israel's corporate bond market between 2008 and 2015. Using a sample of 106 distress events, the variation in expected recovery rates over time is analyzed. The value of distressed firms at the time of default was found to be mostly influenced by the financial conditions of peers in the industry and in the market. In particular, low liquidity and high average leverage ratios of other market participants had a negative effect on the anticipated recovery rate. Firm-specific characteristics were found to have negligible effect on expected recovery rates. Average recovery and default rates are shown to compare well with the experience in other countries.

Suggested Citation

  • Ana Sasi-Brodesky, 2017. "Recovery rates in the Israeli corporate bond market 2008-2015," Bank of Israel Working Papers 2017.17, Bank of Israel.
    • Handle: RePEc:boi:wpaper:2017.17
    as

    Download full text from publisher

    File URL: https://boiwebrepec.azurefd.net/RePEc/boi/wpaper/WP_2017.17.pdf
    File Function: First version, 2017
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    recovery rates; default; bond market; Israel; market price;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:boi:wpaper:2017.17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yossi Yakhin (email available below). General contact details of provider: https://edirc.repec.org/data/boigvil.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.