Abstract

CASTANEDA, Francisco; CARO, Víctor  and  CONTRERAS, Franco. Spreads Determinants of Corporate Bonds in State-Owned Companies. The CODELCO Case. Rev. mex. econ. finanz [online]. 2017, vol.12, n.4, pp.431-446. ISSN 2448-6795.  https://doi.org/10.21919/remef.v12i4.242.

This article aims to measure the impact on CODELCO debt financial spreads as a result of the changes in various factors, mainly resulting from the fall in copper prices. In this sense, the article addresses a public policy issue in todays Chile, because of the low copper prices, that have reduced the company’s contributions to the treasury. The analysis is performed with a sample of data that is quarterly arranged and range from 2003 to 2015, and the goal is to measure the debt spread determinants from a credit risk perspective. As expected, the relationship between the average maturity of the bonds and the spread is inverse, the probability of ”default” and the bond spread relate positively and the price of copper is related negatively with the bond spread. Contrary to what is expected risk classification is not statistically significant and the cash to total assets is positively related with the bond spread.

Keywords : Bond Spread; State owned Enterprise; Copper Price; Credit Risk; Under-Capitalization.