What question did this study set out to answer?

This article aims to analyze the evolution of monetary policy transmission to corporate bond yields in China, focusing on varying credit ratings.

The Dissipating Credit Channel: Monetary Policy and Corporate Bond Yields in China

View Full Paper

Ask AI

Bookmark

Authors

This article examines monetary policy effects on corporate bond yields in China, highlighting evolving patterns over time.

This article aims to analyze the evolution of monetary policy transmission to corporate bond yields in China, focusing on varying credit ratings.
Constructed a unified measure of monetary policy shocks using a modified heteroscedasticity-based identification strategy in a structural VAR.
Utilized bond yield data and local projection methods to assess the impacts of monetary policy.
Analyzed shifts in transmission patterns before and after 2014 regarding bond yield responses to monetary easing.
Before 2014, monetary easing had no significant impact on bond-yield dispersion, with lower-rated bonds equally responsive as higher-rated ones.
Post-2014, lower-rated bonds show significantly reduced responsiveness to monetary easing, increasing bond-yield dispersion.
Mechanism analysis connects changes in monetary policy transmission to ongoing reform processes in China.

Chen et al. (2026) studied this question.

View Full Paper

Ask AI

Bookmark