Typology of the Municipal Bonds Risk – Application for Polish Organized Bonds Market
Typology of the Municipal Bonds Risk – Application for Polish Organized Bonds Market

Author(s): Agnieszka Wojtasiak-Terech
Subject(s): National Economy, Governance, Public Administration, Economic policy, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: municipal bonds; bonds risk; risk typology; bonds organized market;
Summary/Abstract: The objective of the paper was to work out municipal bonds financial risk categories and sub-categories from the investor and issuer point of view and verify which types of risk are crucial for municipal bonds traded on the Polish bonds organized market - Catalyst. Risk categorization was based on risk factors. Conducted research proved that both investors and issuers should consider: market risk, credit risk, liquidity risk, operational risk, legal risk, additional rights risk, business risk and political risk. However different risk sub-categories were identified or risk sub-categories were the same but consequences of risk factors influence were different. The analysis of the municipal bonds traded on the Catalyst market showed that in between all types of financial risk the most crucial for investors are liquidity and market risk, for issuers operational risk, market risk and legal risk.

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