Essays on the US Public Equity and High Yield Bond Markets as a Source of Finance for Shipping Companies
type: CreativeWork
description: This thesis attempts to identify important factors that may affect the pricing and the probability of default of high yield bonds offered by shipping companies; and factors that may influence the pricing and the probability of underpricing of shipping US initial public offerings (IPOs). The analysis is carried out through five chapters and each chapter covers a topic on its own so that it can be read independently of previous and subsequent chapters. Chapter 1 provides an overview of the shipping US public equity market for the period 1987-2010. It also considers the reasons for a shipping company to go public; the advantages and disadvantages of such a decision; and the role of underwriters in the IPO process. Finally, it provides a literature review on shipping equity capital markets. Chapter 2 presents an overview of the shipping US high yield bond market for the period 1992-2010; it discusses the seniority of shipping high yield bonds, and, the advantages and disadvantages for shipping companies that decide to issue high yield bonds. Next, the credit ratings, the yield premia and the probability of default for shipping high yield bonds are examined. Finally, it provides a synopsis of the restructuring options that shipping companies have in case of default. Chapter 3 investigates the factors that may explain the dynamics of yield premia on seasoned shipping high yield bonds. The analysis utilises 40 seasoned high yield bonds offered by 32 shipping companies for the period April 1998 - December 2002; and it employs a set of microeconomic, macroeconomic and, industry related factors. The methodology used is the fixed effects panel data regression model and the results of the study suggest that the dynamics of yield premia of seasoned shipping high yield bonds can be explained by: the credit rating; the term-to-maturity; the changes in earnings in the shipping market, as well as the changes in the yields on the 10-year US Treasury bonds and the Merrill Lynch single…
abstract: This thesis attempts to identify important factors that may affect the pricing and the probability of default of high yield bonds offered by shipping companies; and factors that may influence the pricing and the probability of underpricing of shipping US initial public offerings (IPOs). The analysis is carried out through five chapters and each chapter covers a topic on its own so that it can be read independently of previous and subsequent chapters. Chapter 1 provides an overview of the shipping US public equity market for the period 1987-2010. It also considers the reasons for a shipping company to go public; the advantages and disadvantages of such a decision; and the role of underwriters in the IPO process. Finally, it provides a literature review on shipping equity capital markets. Chapter 2 presents an overview of the shipping US high yield bond market for the period 1992-2010; it discusses the seniority of shipping high yield bonds, and, the advantages and disadvantages for shipping companies that decide to issue high yield bonds. Next, the credit ratings, the yield premia and the probability of default for shipping high yield bonds are examined. Finally, it provides a synopsis of the restructuring options that shipping companies have in case of default. Chapter 3 investigates the factors that may explain the dynamics of yield premia on seasoned shipping high yield bonds. The analysis utilises 40 seasoned high yield bonds offered by 32 shipping companies for the period April 1998 - December 2002; and it employs a set of microeconomic, macroeconomic and, industry related factors. The methodology used is the fixed effects panel data regression model and the results of the study suggest that the dynamics of yield premia of seasoned shipping high yield bonds can be explained by: the credit rating; the term-to-maturity; the changes in earnings in the shipping market, as well as the changes in the yields on the 10-year US Treasury bonds and the Merrill Lynch single…
author: Papapostolou, Nikolaos C.
keywords: HG Finance, HJ Public Finance
date published: 2010
date modified: 2026-07-24T01:39:38Z
provider: City University of London
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: City University London