Publication
Title
Bonds for the long run? The rate of return on corporate bonds in Belgium, 1838–1939
Author
Abstract
We investigate corporate bond returns for the period 1838–1939 by compiling a unique new database of 201 000 monthly observations of bonds traded on the Brussels Stock Exchange. The value‐weighted annualized total rate of return, net of coupon defaults and taxes, is 4.35 per cent in nominal terms and 2.81 per cent in real terms. Estimates of average returns show that corporate bonds outperformed equities during the entire nineteenth century. We find that the risk‐adjusted performance of corporate bonds based on Sharpe ratios exceeds that of equities and sovereign bonds during the corporate bond market's first centennial.
Language
English
Source (journal)
The economic history review. - London
Publication
London : 2024
ISSN
0013-0117 [print]
1468-0289 [online]
DOI
10.1111/EHR.13330
Volume/pages
(2024) , p. 1-28
ISI
001174400600001
Full text (Publisher's DOI)
Full text (open access)
The author-created version that incorporates referee comments and is the accepted for publication version Available from 01.03.2025
UAntwerpen
Faculty/Department
Research group
Project info
Do You want to Bond? Pricing and Use of Corporate Bonds: Lessons from the Past.
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Source file
Record
Identifier
Creation 19.03.2024
Last edited 08.05.2024
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