Impact of Quantitative Tightening on Corporate Bond Issuances and Debt Cost 1
IMPACT OF QUANTITATIVE TIGHTENING ON CORPORATE BOND ISSUANCES
AND DEBT COST
Student's Name
Course
Professor's Name
University
City (State)
Friday, April 28, 2023
, Impact of Quantitative Tightening on Corporate Bond Issuances and Debt Cost 2
Abstract
The dissertation addresses "The Effect of Quantitative Tightening by Central Banks on
Corporate Bond Issuances and Debt Costs." It is important to note that quantitative tightening is
a relatively new subject, unlike quantitative easing, and information and resources are scarce.
The topic is complex, new, and interesting and will help contribute insights. The topic is timely
in the current economic climate, where inflation is a growing concern, and central banks have
started implementing quantitative tightening to counterbalance the pandemic's effects. Therefore,
examining this subject will help in gaining a better understanding of how quantitative tightening
could help stabilize the economy. Also, addressing the topic will help expand knowledge in the
fields such as risk management and debt instruments and explore the relationship between these
areas and quantitative tightening. The topic is particularly relevant as corporate bond issuances
and debt costs are affected by quantitative tightening, which can make financing more
challenging and costly for companies.
Because the effects and limitations of quantitative tightening are not yet fully understood,
the dissertation will include conducting an empirical study using a specific case, such as the
U.S., to analyze its impact on corporate financing. A quantitative research methodology will be
employed in this dissertation. As such, relevant data on quantitative tightening in the United
States will be obtained from the Microtrends Website. On the other hand, relevant data on
corporate bond issuance and corporate debt cost in the United States will be obtained from U.S.
National Treasury and fred.louisfed.org websites, respectively, research. The datasets will be
incorporated into the SPSS version 25 software. The regression model and correlations between
the variables will be obtained when analyzing the data to show the association between the
independent and dependent variables.
Key Words: "Quantitative, Quantitative Tightening, Quantitative Easing, Debt Cost, Corporate
Bond."
, Impact of Quantitative Tightening on Corporate Bond Issuances and Debt Cost 3
Table of Contents
Title Page 1
Abstract 2
Table of Contents 4
1. Introduction 5
1.1. Background 5
1.2. Purpose 6
1.3. Problem Statement 7
1.4. Conceptual Framework 8
1.5. Research Questions 8
1.6. Research Hypotheses 8
1.7. Empirical Study 9
1.8. Research Plan 9
2. Theoretical Framework 10
2.1. Quantitative Tightening by the U.S. Fed Reserve 11
2.2. Corporate Bond Issuance 11
2.3. Corporate Debt Cost 11
3. Literature Review of the Impact of Quantitative Tightening on Corporate Bond Issuance
and Debt Cost 12
4. Research Methodology 19
5. Results and Discussion 20
6. Conclusion 28
7. References 30
IMPACT OF QUANTITATIVE TIGHTENING ON CORPORATE BOND ISSUANCES
AND DEBT COST
Student's Name
Course
Professor's Name
University
City (State)
Friday, April 28, 2023
, Impact of Quantitative Tightening on Corporate Bond Issuances and Debt Cost 2
Abstract
The dissertation addresses "The Effect of Quantitative Tightening by Central Banks on
Corporate Bond Issuances and Debt Costs." It is important to note that quantitative tightening is
a relatively new subject, unlike quantitative easing, and information and resources are scarce.
The topic is complex, new, and interesting and will help contribute insights. The topic is timely
in the current economic climate, where inflation is a growing concern, and central banks have
started implementing quantitative tightening to counterbalance the pandemic's effects. Therefore,
examining this subject will help in gaining a better understanding of how quantitative tightening
could help stabilize the economy. Also, addressing the topic will help expand knowledge in the
fields such as risk management and debt instruments and explore the relationship between these
areas and quantitative tightening. The topic is particularly relevant as corporate bond issuances
and debt costs are affected by quantitative tightening, which can make financing more
challenging and costly for companies.
Because the effects and limitations of quantitative tightening are not yet fully understood,
the dissertation will include conducting an empirical study using a specific case, such as the
U.S., to analyze its impact on corporate financing. A quantitative research methodology will be
employed in this dissertation. As such, relevant data on quantitative tightening in the United
States will be obtained from the Microtrends Website. On the other hand, relevant data on
corporate bond issuance and corporate debt cost in the United States will be obtained from U.S.
National Treasury and fred.louisfed.org websites, respectively, research. The datasets will be
incorporated into the SPSS version 25 software. The regression model and correlations between
the variables will be obtained when analyzing the data to show the association between the
independent and dependent variables.
Key Words: "Quantitative, Quantitative Tightening, Quantitative Easing, Debt Cost, Corporate
Bond."
, Impact of Quantitative Tightening on Corporate Bond Issuances and Debt Cost 3
Table of Contents
Title Page 1
Abstract 2
Table of Contents 4
1. Introduction 5
1.1. Background 5
1.2. Purpose 6
1.3. Problem Statement 7
1.4. Conceptual Framework 8
1.5. Research Questions 8
1.6. Research Hypotheses 8
1.7. Empirical Study 9
1.8. Research Plan 9
2. Theoretical Framework 10
2.1. Quantitative Tightening by the U.S. Fed Reserve 11
2.2. Corporate Bond Issuance 11
2.3. Corporate Debt Cost 11
3. Literature Review of the Impact of Quantitative Tightening on Corporate Bond Issuance
and Debt Cost 12
4. Research Methodology 19
5. Results and Discussion 20
6. Conclusion 28
7. References 30
