EH20126731 CREATION AND DEVELOPMENT OF A MARKET: THE PARIS CORPORATE BOND MARKET IN THE 19TH CENTURY

Résumé

This paper studies the French corporate bond market during the 19th century. Despite its importance, the performance of corporate bonds quoted on the Paris Bourse has never been studied. In order to analyse this market, a price index of the corporate bond market has been created using modern techniques. The construction of the index is based on an original database, created from new data that are collected directly from the publications of the market authorities during the 19th century. Using this index, the risk and the return of the market have been measured. The performance of French corporate bonds was compared with those of stocks and government bonds. The results show that, during the 19th century, corporate bonds were the least risky equities of the Paris Bourse. In conclusion, the impact of the government guarantee on corporate bonds is also assessed.