ii
Chapter 5:
Conclusions and recommendations
Chapter 01:
In chapter one, in addition to introducing the reasons for choosing the topic
as well as research objectives, the author also clarifies the scope of research,
research subjects and the contributions of the research.
Chapter 02:
In chapter two, the author discusses the theory of credit spread, as well as
summarizes some of the previous scientific papers that relevant to this research.
In the theoretical part of corporate bond credit spreads, the paper refers the
definition of the corporate bond credit spread by the San Francisco Federal Reserve
Bank as well as the formula for determining the credit spread. Factors influencing
the interest spread based on the sum of Lou (2013) are also mentioned in the
theoretical framework. There are 5 traditional factors besides Credit risk that affect
credit spreads, include:
Liquidity risk
Tax effects
Risk premium for systematic shocks
Diversification risk
Treasury term structures
The Merton model is also covered in this section. The purpose of using the
Merton model is to determine the issuer's credit risk, thereby analyzing the impact
of extraneous credit risk factors on the corporate bond credit spread.
The scientific papers summaries section will summarize the research in the
world as well as in Vietnam. Most of the research were studied outside Vietnam and
there is only one empirical research was done by Vietnamese researcher. The author
will comment on these studies, pointing out the inadequacies or limitations of the
research papers as the basis for conducting this study.
