3 Issuing costs of state guaranteed bonds - Financial Risk and ...

Table 8: Estimation results of issuing cost model
Use of state guarantee
(i) Sovereign CDS-guarantee interaction
(SOVii) Guarantor-guarantee interactions
( i i)
Bank rating-guarantee interaction
( jEE I)
Bank rating dummies-guarantee interactions
j i)
Bond rating-guarantee interaction
( j I)
Bond rating dummies-guarantee interactions
( j I)
Bond rating
(RATINGi) Bank rating
(RATINGj) Time to maturity at issue
(MATURITYit) Sovereign CDS
(SOVi) Main estimation
model
-33.4***
(6.36)
-31.3***
(5.94)
-0.321
(2.22)
0.223***
(0.0228)
Alternative models
3 Issuing costs of state guaranteed bonds
Guarantor-specific impacts Bank-specific impacts Bond-specific impacts
Sovereign CDSuse
of guarantee
interactions
-33.3***
(6.42)
-0.11
(0.14)
-31.3***
(5.95)
-0.32
(2.22)
0.234*
0.134
Guarantor-use of
guarantee
interactions
-26.5***
(14.4)
See Figure 17
7.86
(7.57)
2.80
(1.99)
0.317***
(0.110)
Bank rating-use
of guarantee
interactions
(1)
-141.7***
(38.2)
12.8***
(4.53)
-10.9***
(4.19)
-.0034
(3.70)
0.195***
(0.032)
Bank rating-use
of guarantee
interactions
(2)
-88.8*
(50.4)
See Table 7
-11.92**
(3.95)
-0.136
(3.66)
0.157***
(0.035)
Bond rating-use
of guarantee
interactions
(1)
101.1*
(54.3)
-7.86*
(4.22)
-7.64
(2.85)
5.32*
(3.16)
0.041
(0.058)
Bond rating-use
of guarantee
interactions
(2)
8.45
(37.1)
See Table 6
-8.47***
(2.54)
7.50***
(2.83)
0.309***
(0.064)
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