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Le recours au financement désintermédié par une collectivité locale et l'évaluation de la prime de risque obligataire: le cas de la ville de Marseille

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  • Stéphanie Serve

    (Université Paris 12)

Abstract

With the case study of the city of Marseille over the period 1997-2000, this article attempts to analyze the motivation of the city for issuing guaranteed municipal bond and to identify the determining factors of the risk premium. The case study shows the existence of the juridical risk that explains that the premium of guaranteed municipal bond may be higher than a AAA rated bond. The results show the impact of default risk indicators (indebtedness, current receipts structure and socio-economics variables) on the risk premium; bond characteristics (call provision, amortization) are also significant.

Suggested Citation

  • Stéphanie Serve, 2002. "Le recours au financement désintermédié par une collectivité locale et l'évaluation de la prime de risque obligataire: le cas de la ville de Marseille," Revue Finance Contrôle Stratégie, revues.org, vol. 5(2), pages 107-142, June.
    • Handle: RePEc:dij:revfcs:v:5:y:2002:i:q2:p:107-142
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    References listed on IDEAS

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    More about this item

    Keywords

    local governments; municipal bonds; default risk; rating;
    All these keywords.

    JEL classification:

    • G19 - Financial Economics - - General Financial Markets - - - Other
    • H79 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other

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