Bond Yield Discrepancies - A study of bond yield components and discrepancies for US and EU bonds from 2008 to 2017

Sammanfattning: This paper analyses the yield components of bonds for US and EU bonds from 2008 to 2017. We calculate the yield difference for bonds with different seniority, coupons and issuing region and use a multivariate regression analysis. Using these results, we analyse types of bonds that seem more beneficial to invest in. We find that senior unsecured bonds have the lowest average yield, EU issued bonds tend to have a lower yield and a higher coupon has a positive effect on the yield.