TY - JOUR T1 - Sovereign Wealth Funds’ Investments and Corporate Bondholders JF - The Journal of Private Equity SP - 14 LP - 22 DO - 10.3905/jpe.2018.21.3.014 VL - 21 IS - 3 AU - Giorgia Bulgarelli AU - Gianfranco Gianfrate Y1 - 2018/05/31 UR - https://pm-research.com/content/21/3/14.abstract N2 - The authors investigate the impact of Sovereign Wealth Funds’ (SWFs) investments on the target firm’s bondholders. Their sample comprises 166 deals carried out during the period 2000–2016. They find that when SWFs invest in target companies, a reduction of the perceived credit risk follows and the value of the debt for existing bondholders rises. The market reaction for traded bonds appears to be positively associated with the level of transparency of the fund and to the rating of targets’ bonds. Overall, these results support the view that SWFs have a “certification role” for bondholders and determine a consistent increase in the value of invested firms that accrue to both shareholders and bondholders.TOPICS: Private equity, performance measurement, global, statistical methods ER -