Research on the Credit Enhancement Effectiveness of Local Municipal Bonds
This paper empirically tests the effects of different credit enhancement methods on the credit rating,issuance pricing and spreads of local municipal bonds based on the transaction data of local municipal bonds from 2015 to 2022.It is found that the credit enhancement can significantly improve the credit rating,but there are differences in reducing the issue price of local municipal bonds.The third-party professional guarantee reduces the interest rate of local municipal bonds by 1.36％on average,and the mortgage guarantee and the margin compensations are not significant,while the credit risk mitigation(protection)tools increases the issuing cost of local municipal bonds by about 0.27％.In addition,the third-party professional guarantee can significantly narrow the credit spread and the term spread,and mortgage guarantee,margin compensations and credit risk mitigation(protection)tools are not significant.
local municipal bondscredit enhancementthe third-party professional guaranteethe spread
NETL
NSTL
万方数据
