Does leverage matter to market spread ?

Bakri, Mohammed Hariri and Seng, Ngau Duo and Md Razak, Mohamad Idham and Zakaria, Shahsuzan (2020) Does leverage matter to market spread ? International Journal Of Innovation, Creativity And Change, 11 (12). pp. 98-109. ISSN 2201-1323

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Abstract

Securitization includes the transfer of illiquid resources to investors where such exchange is supported by the issuance of obligation securities called Asset-Backed Debt Securities (ABS) through a Special Purpose Vehicle (SPV). The under-utilisation of bonds or the absence of enhancement of the firm credit portfolio resulted in financial difficulties being faced by companies during the financial crisis in 1997. The fundamental focus in this investigation is on the determinants of primary market spread on RMBS, CMBS and ABS, and this study intends to inspect 12 years of information, from 2004 to 2016. Past examinations have left gaps in this area of research. The research objectives are the investigation of the determinants that incorporate domestic macroeconomic variables. The exploration will adopt a quantitative technique in investigating the information gathered, which is focused on pools Ordinary Least Square (OLS) and panel data. Regarding the primary market spread in Malaysia, factors such as debt to equity showed significance in the primary market spread in the control models, and originators may want to consider this economic issue before issuing securitized products.

Item Type:	Article
Uncontrolled Keywords:	Asset-Backed Securities, Performance, Asset Pricing, Panel data
Divisions:	Faculty of Technology Management and Technopreneurship > Department of Technology Management
Depositing User:	Norfaradilla Idayu Ab. Ghafar
Date Deposited:	04 Aug 2020 13:21
Last Modified:	04 Aug 2023 11:10
URI:	http://eprints.utem.edu.my/id/eprint/24147
Statistic Details:	View Download Statistic

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