Bonds for the long run? The rate of return on corporate bonds in Belgium, 1838-1939

Datos Bibliográficos

ID3328565
AutoresKevin Van Mencxel (0000-0001-7240-6200, University of Antwerp, autor de correspondencia), Jean Annaert (0000-0002-1680-3399, University of Antwerp and Antwerp Management School), Marc Deloof (0000-0002-6314-5528, University of Antwerp and Antwerp Management School)
Año2024
Volumen77
Número4
Páginas1414-1441
Fecha de publicación2024-11-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic History Review (JOURNAL)
Identificadores de la revistaISSN: 0013-0117 • E-ISSN: 1468-0289
EditorialWiley (PUBLISHER • GB)
DOI10.1111/ehr.13330
OpenAlexW4392240415
IdiomaEN
Citas recibidas1
Referencias citadas40

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

Bond · Bond market index · Business · Corporate bond · Coupon · Default · Econometrics · Economics · Financial economics · Financial system · Monetary economics · Sharpe ratio · Stock exchange · Banking stability, regulation, efficiency · Finance · Global Financial Crisis and Policies · Historical Economic and Social Studies