Key Characteristics and Scope of the Bulgarian Corporate Bond Market
Key Characteristics and Scope of the Bulgarian Corporate Bond Market

Summary/Abstract: The aim of this paper is to investigate the main Bulgarian corporate bond attributes, such as: size of issue, industry, currency, maturity and floating rate occurrence, from 2004 to 2014. In addition, important parameters such as the object of allocations of funds, collateral and the ownership concentration of issuers are exposed. Examples of prospectus clauses undermining corporate bond safety and soundness are also detailed and evaluated. Bulgaria’s corporate bond legislation is analysed in relation to the potential of loopholes allowing for issuers’ actions being taken against the interest of bondholders. The possibility of the former stems from loose norms of regulation permitting an ease alteration of base loan parameters. Finally, the sample corporate bond performance is analysed in terms of defaulted and restructured bond issues from 2016 perspective.

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