Comparison of the Russian and Foreign Market of High-yield Bonds

The aim of the paper is to provide comparative analyses of the high yield bonds markets in a number of developed and emerging countries. The key reason for this research is the fact that high yield debt market occurred in Russia only a couple of years ago. Therefore, the topic warrants special attention from investors, companies, and authorities. Nevertheless, a new source of funding has not been properly studied in Russia and, thus, the area deserves well-structured statistical description along with systematized experience of other countries. This paper provides a comparative analysis of the developed markets of the United States, Europe and the domestic market of HYB. Market dynamics was described using a regression analysis of factors affecting the global and Russian high yield bonds index. An empirical study showed that the volatility index and the interbank lending rate had the greatest influence on the index, while macroeconomic factors (exchange rate and oil price) appeared to be insignificant. The descriptive and empirical analysis presented in this paper will be helpful for investors, issuers and regulators to form their behaviour strategies in the future.