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The international financial markets as a source of funding for Greek non-financial corporations


  • Petros Migiakis

    (Bank of Greece)


Following the Global Financial Crisis, bank lending to euro-area non-financial corporations (NFCs) has been, to a large extent, substituted by market financing. In Greece the market financing channel for NFCs has been activated since the end of 2012; by the end of 2014 bonds issued by large and resilient Greek NFCs, in international markets, amounted to more than 6 billion euros. An index is constructed, for the purposes of monitoring the developments in the market for Greek corporate bonds; the methodology of constructing the index is presented in the present article (name: Bank of Greece “GR NFC bond index”, Bloomberg ticker: BOGGRNFC). With the use of the index, I examine the drivers of the Greek corporate bond yields, by means of cointegration analysis with structural breaks. The findings indicate that up until October 2014 Greek corporate bonds were significantly affected by factors affecting corporate bonds belonging to the investment grade, from other euro-area countries. However, this cointegration relationship is found to be subject to structural changes associated to changes in investor confidence towards the Greek economy.

Suggested Citation

  • Petros Migiakis, 2014. "The international financial markets as a source of funding for Greek non-financial corporations," Economic Bulletin, Bank of Greece, issue 40, pages 59-78, December.
  • Handle: RePEc:bog:econbl:y:2014:i:40:p:59-78

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    References listed on IDEAS

    1. Eric A. Verhoogen, 2008. "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector," The Quarterly Journal of Economics, Oxford University Press, vol. 123(2), pages 489-530.
    2. John Sutton & Daniel Trefler, 2011. "Deductions from the Export Basket: Capabilities, Wealth and Trade," NBER Working Papers 16834, National Bureau of Economic Research, Inc.
    3. Hylke Vandenbussche, 2014. "Quality in Exports," European Economy - Economic Papers 2008 - 2015 528, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Peter K. Schott, 2008. "The relative sophistication of Chinese exports [‘Manufacturing Earnings and Compensation in China’]," Economic Policy, CEPR;CES;MSH, vol. 23(53), pages 6-49.
    5. Peter K. Schott, 2004. "Across-Product Versus Within-Product Specialization in International Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 647-678.
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    Cited by:

    1. Theodora Kosma & Pavlos Petroulas & Evangelia Vourvachaki, 2020. "What drives wage differentials in Greece: workplaces or workers?," Economic Bulletin, Bank of Greece, issue 52, pages 69-72, December.
    2. Constantina Backinezos & Stelios Panagiotou & Evangelia Vourvachaki, 2020. "Multiplier effects by sector: an input-output analysis of the Greek economy," Economic Bulletin, Bank of Greece, issue 52, pages 7-28, December.
    3. Nikos Vettas & Konstantinos Peppas & Sophia Stavraki & Michail Vasileiadis, 2020. "The contribution of Industry to the Greek economy: facts and prospects," Economic Bulletin, Bank of Greece, issue 52, pages 29-67, December.

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    More about this item


    Corporate bonds; non-financial corporations; market financing; bond index; Greek debt crisis;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill


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