財金系擬於 3/25 (一) 邀請Prof. Konan Chan,  至本所進行專題演講，相關訊息如下：

時間: 3/25 (一) 10:30 am

地點: 管一B1會議室

演講人: Konan Chan

學校: Department of Finance, National Chengchi University.

講題: The performance of bonds backedup by private equity firms

Abstract

The bond market is an important source of financing for leveraged buyouts (LBOs)

or Private Equity (PE) related transactions. Most of these PE-sponsored bonds have junk

bond credit ratings and are bought by institutional investors. Using the methodology

suggested by Bessembinder, Kahle, Maxwell and Xu (2009), we provide a

comprehensive analysis of the performance of PE-sponsored bonds. PE-sponsored bonds

consistently underperform comparable bond benchmarks, especially those bonds with

credit ratings of below Ba or bonds issued in hot bond market periods. Furthermore,

bonds sponsored by more experienced PE groups underperform those bonds associated

with less experienced PE groups, while bonds backed by investment bank-affiliated PEs

underperform bonds sponsored by other PE groups. These findings provide new insights

for institutional investors and policy makers about PE’s role in the junk bond market.