Bankers, Markets & Investors

U.S. Domestic vs. Eurodollar Issuance of Make-Whole Callable Corporate Bonds

Maxime Debon — 2026-04-28

This article examines how market participants value the attributes of Make-Whole Callable (MWC) bonds—focusing particularly on the yield to maturity at issuance and the impact of different issuance modes on that yield. MWC bonds have dominated the U.S. corporate bond market for several years. We conduct both standard multiple linear regressions and quantile regressions using a set of traditional yield determinants, along with dummy variables to distinguish between domestic 144A private placements, Eurodollar bonds, and domestic public bonds. We select 2,217 MWC bonds issued by U.S. nonfinancial firms between 1999 and 2016. Our results indicate that the issuance mode dummies are, on average, significant, that the dummy for domestic private placements is significant mainly on the last tercile of the conditional distribution of yields, whereas the dummy for Eurodollar bonds is significant across the first four quintiles. Regarding the determinants, we find that the influence of maturity declines across the conditional distribution, while the effects of total assets and the BAA-AAA spread index increase. In summary, relative to bonds issued in the U.S. domestic public market,
MWC bonds issued in the Eurodollar bond market or privately placed in the domestic market provide additional compensation to investors. A potential explanation for the Eurodollar bond premium is that market participants may perceive the enforceability of the make-whole call provision to be limited.

The Crypto Real Estate Nexus in the Eurozone: Understanding Financial Transmission Channels

Abdelkader Aguir — 2026-04-28

This study examines the impact of cryptocurrency on the real estate market in the European monetary union (The 20 EU countries that have adopted the euro as their national currency), analyzing shocks and business cycle fluctuations. For this purpose, we use a BSVAR model and quarterly data from 2009-2024, applying the Bayesian method. The results obtained through IRF reveal that cryptocurrencies are gradually gaining popularity. However, their adoption in the real estate sector remains hampered by their volatility and regulatory uncertainties. While they offer opportunities for innovation, their use as a widespread means of payment is still limited. Their overall impact is double-edged, combining disruptive potential with challenges linked to stability and trust

Impact of French State-Guaranteed Loans on Company Financial Statements During the COVID-19 Crisis

Constantin Foreau — 2026-04-28

The COVID-19 pandemic severely disrupted the global economy. As a result, most governments launched an unprecedented range of temporary credit and tax deferral programs. This article analyzes the effects
of French state-guaranteed loans (SGLs) on financial statements and corporate default risk using the difference-in-differences method. The French SGL program studied enabled companies to benefit from loans without any limitations on eligibility in terms of size or sector. Prior to the crisis, companies participating in the program had lower cash flow,
had higher debt, held more cash, were younger, and were more at risk of bankruptcy. Using a unique dataset, we show that companies participating
in the program increased their debt and cash holdings more than others due to precautionary borrowing and cash buffering. We demonstrate
that despite a reduction in bankruptcy during the COVID-19 crisis, participating companies had a higher bankruptcy risk after the crisis than they did before and compared to nonparticipants.

How Compensation Committees Shape Performance Share Awards to Executives: Insights from Agency and Managerial Power Theories

Evelyne Poincelot — 2026-04-28

The aim of the article is to study the allocation of performance shares to corporate officers and the role of the compensation committee (CC). Either the CC awards performance shares with the aim of aligning the interests of executives with those of shareholders or other stakeholders (agency theory). Or the CC allocates the performance shares desired by the manager himself by becoming an instrument at his service (theory of managerial power). Does the composition of the CC reveal its role? The answer could be positive if we also analyse the ownership structure.