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Title
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Bonds for the long run? The rate of return on corporate bonds in Belgium, 1838–1939
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Author
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Abstract
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| 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. |
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Language
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English
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Source (journal)
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The economic history review. - London
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Publication
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London
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2024
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ISSN
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0013-0117
[print]
1468-0289
[online]
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DOI
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10.1111/EHR.13330
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Volume/pages
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77
:4
(2024)
, p. 1414-1441
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ISI
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001174400600001
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Full text (Publisher's DOI)
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Full text (open access)
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The author-created version that incorporates referee comments and is the accepted for publication version Available from 01.03.2025
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Full text (publisher's version - intranet only)
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