The Study of Bond Spreads and Credit Ratings in Honduras
Journal Title: International Journal of Social Science And Human Research - Year 2024, Vol 7, Issue 06
Abstract
This research rigorously examines the intricate influences on Honduras' cost of borrowing from 2013 to 2022. The study employs the Corruption Perceptions Index (CPI) and Standard and Poor's as main determinants. Control variables include macroeconomic fundamentals that pertain to a country’s performance such as GDP growth, inflation and international reserves, fiscal variables such as debt-to-GDP ratio, and the central administration’s balance, and global factors such as global risk aversion measured by the Chicago Board Options Exchange's CBOE Volatility Index (VIX) and U.S rates. The study finds that country-specific fundamentals, global factors, corruption perceptions, sovereign credit ratings, and political risk all play significant roles in influencing Honduras’ cost of borrowing. It also exposes the limitations of credit ratings in capturing the truth about bond pricing in Honduras. These findings highlight the complex interplay of economic, global, and sociopolitical factors in shaping Honduras' bond spreads, emphasizing the need for a comprehensive approach to credit risk assessment and bond market analysis. The results from this research contribute to economic stability strategies for policymakers, enhance understanding for economists, and assists investors and financial analysts in making informed decisions based on identified variables impacting bond spreads.
Authors and Affiliations
HueyMing Yen, HuiChen Chiang,Marcela Alejandra Palacios Zúniga
Keywords
Related Articles
- EP ID EP736929
- DOI 10.47191/ijsshr/v7-i06-44
- Views 57
- Downloads 0
The Role of Buzzer Groups in Policies for Handling the Covid-19 Pandemic on Social Media
Controversial policies in handling the Covid-19 pandemic in Indonesia have become the subject of discussion in online media and social media. The subject of this discussion became a cyberwarfare (war of information), esp...
Mechanism and Waiver of Covid-19 Vaccine Patent Rights According to Agremeent on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
TRIPS' patent policy limits the country's efforts in drug development, especially in the manufacture of generic drugs – drugs made after the patent period has expired. Patents greatly affect prices because they have a mo...
The Role of Trust and its Influencing Factors in the Hospital Industry Indonesia Case
Trust is important for a hospital, because trust is a variable that can bridge various independent variables to the dependent variable. Trust that is embedded in the minds of patients will be a factor that patients consi...
Applying the Cornell Note-Taking Method to Enhance Reading Comprehension for High School Students
Reading comprehension requires simultaneous information extraction and meaning construction, involving active text engagement. However, most high school students have difficulty understanding and effectively remembering...
Collaborative Efforts by a University, Government and Agricultural Cooperatives (ACS) to Develop a Credit Facilitation Tool: Evidence from Kamwenge and Sheema Districts in Uganda
Financial performance of Agricultural Cooperatives in Uganda has constrained their ability to attract financiers and thus can’t extend timely and optimal credit facilities to Small Scale Farmers in Uganda despite their h...