00000nam 2200000za 4500 9.834788 CaOODSP 20250821075058 cr ||||||||||| 170404s2017 oncd ob f000 0 eng d CaOODSP eng eng fre n-cn--- FB3-7/2017-2E-PDF Leboeuf, Maxime. What explains the recent increase in Canadian corporate bond spreads [electronic resource] / by Maxime Leboeuf and James Pinnington. [Ottawa] : Bank of Canada, c2017. 9 p. (un-numbered pages) : col. charts Staff analytical note = Note analytique du personnel, 2369-9639 ; 2017-2 Cover title. Includes bibliographical references. "The spread between the yield of a corporate bond and the yield of a similar Government of Canada bond reflects compensation for possible default by the issuing firm and compensation for additional risks beyond default. Using the approach proposed by Gilchrist and Zakrajšek (2012), we find that roughly two-thirds of the total 1.2-percentage-point increase in corporate bond spreads from July 2014 to September 2016—a period when oil prices were low—is due to higher compensation for possible default. Default risk explains most of the increase of spreads for energy and high-yield firms but explains almost none of the increase for financial and investment-grade firms. This suggests that liquidity risk and other factors beyond possible default affected spreads of financial and other investment-grade firms"--Abstract, p. [2]. Includes abstract in French. gccst Bonds gccst Capital markets Pinnington, James. Bank of Canada. Staff analytical note (Bank of Canada) 2369-9639 ; 2017-2 (CaOODSP)9.807323 PDF 442 KB https://publications.gc.ca/collections/collection_2017/banque-bank-canada/FB3-7-2017-2-eng.pdf