Sovereign CDS spreads around corporate bond issuance

This figure shows the changes in the sovereign CDS spread around corporate bond issuance. We require the par amount of the bond to be greater than $100 million. The top panel shows changes in the sovereign CDS around FC corporate bond issuance; the middle panel show changes in the sovereign CDS spreads around LC corporate bond issuance; and the bottom panel shows the difference in the sovereign CDS spreads around FC and LC bond issuance. All changes to the sovereign CDS spreads are calculated with respect to the CDS level on the day prior to the issuance date. The dots represent point estimates, and the gray dashed lines represent 95|$\%$| confidence internal for the point estimates. The confidence intervals are constructed based on robust standard errors clustered at the issuer level.