3 Issuing costs of state guaranteed bonds - Financial Risk and ...
3 Issuing costs of state guaranteed bonds - Financial Risk and ...
3 Issuing costs of state guaranteed bonds - Financial Risk and ...
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3 <strong>Issuing</strong> <strong>costs</strong> <strong>of</strong> <strong>state</strong> <strong>guaranteed</strong> <strong>bonds</strong><br />
Table 7: Baseline impact <strong>and</strong> ratings upgrade effect, by bank rating (n=310)<br />
Bank rating Mean 95% lower CI 95% upper CI Range<br />
AAA 91.5 -28.6 211.5 240.1<br />
AA+ 110.5 2.7 218.2 215.5<br />
AA 89.9 -13.4 193.3 206.7<br />
AA- 137.8 38.1 237.4 199.3<br />
A+ 50.2 -47.2 147.5 194.6<br />
A 68.1 -28.5 164.6 193.1<br />
A- 98.5 10.4 186.6 176.2<br />
BBB+ 7.9 -82.2 97.7 179.9<br />
BBB- -17.3 -106.1 71.5 177.6<br />
Note: Reduction in issuing <strong>costs</strong> is measured by the z-spread (for fixed rate <strong>bonds</strong>) <strong>and</strong> the zero discount margin (for non-fixed rate<br />
<strong>bonds</strong>) based on the CBBT pricing source. Rating classes not shown were omitted from estimation due to multi-collinearity.<br />
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