Lars-Henning Fischer Book order

This paper studies the behavior of corporate bond spreads during different market regimes between 2004 and 2016. Applying a Markov-switching vector autoregressive (MS-VAR) model, we document that the dynamic impact of spread determinants varies substantially with market conditions. In periods of high volatility, systematic credit risk - rather than interest rate movements - contributes to driving up spreads. Moreover, while market-wide liquidity risk is not priced when volatility is low, it becomes a crucial factor during stress periods. Our results challenge the notion that spreads predominantly capture credit risk and suggest it must be reassessed during periods of financial distress.

Focusing on the valuation of service companies with significant intangible assets, this thesis examines the challenges in assessing their contribution to revenue and growth. Using Deutsche Telekom as a case study, which has nearly 40% of its assets as intangibles, the research explores the telecom industry’s trends and developments. Additionally, it includes a Porter’s five forces analysis to provide a comprehensive overview of the competitive landscape within the industry, highlighting the complexities of valuing intangible assets.