Spreads of bonds issued by sub-sovereign European governments

Abstract

[EN] This paper identifies the factors that affect the spread of fixed and variable type bonds in the primary and secondary markets issued by sub-sovereign European governments. The analyses of both markets will be done separately to compare whether the determinants in the primary market coincide with those in the secondary market. The analyses will examine the period between February 2008 and December 2013 using data panel estimations. The conclusions are that both markets are approximately identical behavior and the signs of the variables matched what was expected in nearly every case. Also, we concluded that the most important in determining the spread sub-sovereign variable is the spread of the sovereign state.

[ES] El articulo identifica los factores que afectan al spread de los bonos de tipo fijo y variable en los Mercados primarios y secundarios, emitidos por los gobiernos subsoberanos europeos. El análisis de ambos mercados será realizado por separado para comparar si los determinantes en el Mercado primario coincide con los del secundario. El analisis examinará el periodo comprendido entre febrero de 2008 y diciembre de 2013 utilizando una estimación por datos panel. Se concluye que ambos mercados tienen aproximadamente comportamientos idénticos y los signos de las variables coinciden con los esperados en la mayoría de los casos.