/***********************************************************************************************************/ /***********************************************************************************************************/ *This do-file produces Figure 4 ("Investmentgrade versus leveraged loan market") * *Input *- Master_Dealscan.dta /***********************************************************************************************************/ /***********************************************************************************************************/ /****************************************************************/ /********** 0. Intros ***************************************/ /****************************************************************/ set more off global path "C:\Users\tobia\Dropbox\6_WIP Papers\Trends in Corporate Borrowing" /****************************************************************/ /********** 1. Graph for the U.S. *****************************/ /****************************************************************/ *Loans use "$path/2_IntermediateFiles/Master_Dealscan.dta", clear keep if Country == "USA" keep if BaseRate == "LIBOR" keep if inlist(Currency, "United States Dollars") drop if LoanType2 == "Other" table leveraged igrade, c(sum FacilityAmt) table leveraged igrade, c(count FacilityAmt) keep if leveraged != . & igrade != . /*Market segment information missing*/ drop if leveraged == 0 & igrade == 0 /*Loan classified as both not igrade and not leveraged*/ drop if leveraged == 1 & igrade == 1 /*Loan classified as both igrade and leveraged*/ gen cat = "Revolver" if LoanType4 == "Revolver" replace cat = "TermLoanA" if LoanType4 == "TermLoanA" replace cat = "TermLoanB" if LoanType4 == "TermLoanB" collapse (sum) FacilityAmt, by(year cat leveraged) replace FacilityAmt = FacilityAmt / 1000 /*FacilityAmt from USD mn --> USD bn*/ table year cat if leveraged == 0, c(mean FacilityAmt) format(%9.1f) #d ; twoway (line FacilityAmt year if leveraged == 0 & cat == "Revolver", color (black)) (line FacilityAmt year if leveraged == 0 & cat == "TermLoanA", color (gs12)) , legend(col(1) order(1 "Revolver" 2 "Term Loan") rowgap(*4) size(small)) title("Loans: Investment Grade", size(small)) xtitle("Year") ytitle("Facility Amount in USD bn", size(small)) ylabel(0(200)1400, labsize(small) angle(90) nogrid) yscale(titlegap(*10)) xlabel(2002(2)2019, labsize(small) angle(vertical)) xmtick(2002(1)2019, nolabels ticks) graphregion(fcolor(white) lcolor(white) ifcolor(white) ilcolor(white)) name(A, replace); #d cr graph export "$path/3_Results/Figure4a.pdf", replace *Same as table (to be able to read off exact numbers) table year cat if leveraged == 1, c(mean FacilityAmt) format(%9.1f) #d ; twoway (line FacilityAmt year if leveraged == 1 & cat == "Revolver", color (black)) (line FacilityAmt year if leveraged == 1 & cat == "TermLoanA", color (gs12)) (line FacilityAmt year if leveraged == 1 & cat == "TermLoanB", color (black) lpattern(dot) ) , legend(col(1) order(1 "Revolver" 2 "Term Loan - Bank" 3 "Term Loan - Inst." ) size(small)) title("Loans: Leveraged", size(small)) xtitle("Year") ytitle("Facility Amount in USD bn", size(small)) ylabel(0(200)1400, labsize(small) angle(90) nogrid) yscale(titlegap(*10)) xlabel(2002(2)2019, labsize(small) angle(vertical)) xmtick(2002(1)2019, nolabels ticks) graphregion(fcolor(white) lcolor(white) ifcolor(white) ilcolor(white)) name(B, replace); #d cr graph export "$path/3_Results/Figure4b.pdf", replace *Same as table (to be able to read off exact numbers) table year cat if leveraged == 1, c(mean FacilityAmt) format(%9.1f) *Bonds import excel using "$path/0_Data/SIFMA/Corporate-US-Corporate-Issuance-SIFMA (2).xls", sheet("Issuance") cellrange(A7:C31) firstrow clear rename A year rename Grade InvestmentGrade rename Yield Leveraged keep if year >= 2002 & year <= 2019 #d ; twoway (line InvestmentGrade year, color (black)) (line Leveraged year, color (gs12)) , legend(col(1) order(1 "Investment Grade" 2 "Leveraged") rowgap(*4) size(small)) title("Bonds", size(small)) xtitle("Year") ytitle("Issuance in USD bn", size(small)) ylabel(0(200)1400, labsize(small) angle(90) nogrid) yscale(titlegap(*10)) xlabel(2002(2)2019, labsize(small) angle(vertical)) xmtick(2002(1)2019, nolabels ticks) graphregion(fcolor(white) lcolor(white) ifcolor(white) ilcolor(white)) name(C, replace); #d cr graph export "$path/3_Results/Figure4c.pdf", replace graph combine A B C, col(3) graphregion(fcolor(white) lcolor(white) ifcolor(white) ilcolor(white)) graph export "$path/3_Results/Figure4.pdf", replace graph export "$path/3_Results/Figure4.png", replace /****************************************************************/ /********** 2. Graph for Europe *****************************/ /****************************************************************/ use "$path/2_IntermediateFiles/Master_Dealscan.dta", clear *Sample (similar as for US, but with additional restrictions on base rate and currency) keep if inlist(Country, "Austria", "Belgium", "Germany", "Finland", "France", "Greece", "Ireland", "Italy", "Luxembourg") | inlist(Country, "Netherlands", "Portugal", "Spain") *keep if inlist(BaseRate, "LIBOR", "Euribor") keep if inlist(Currency, "Euro", "United Kingdom Pounds", "United States Dollars") drop if LoanType2 == "Other" table leveraged igrade, c(sum FacilityAmt) table leveraged igrade, c(count FacilityAmt) keep if leveraged != . & igrade != . /*Market segment information missing*/ drop if leveraged == 0 & igrade == 0 /*Loan classified as both not igrade and not leveraged*/ drop if leveraged == 1 & igrade == 1 /*Loan classified as both igrade and leveraged*/ gen cat = "Revolver" if LoanType4 == "Revolver" replace cat = "TermLoanA" if LoanType4 == "TermLoanA" replace cat = "TermLoanB" if LoanType4 == "TermLoanB" collapse (sum) FacilityAmt, by(year cat leveraged) replace FacilityAmt = FacilityAmt / 1000 /*FacilityAmt from USD mn --> USD bn*/ table year cat if leveraged == 0, c(mean FacilityAmt) format(%9.1f) #d ; twoway (line FacilityAmt year if leveraged == 0 & cat == "Revolver", color (black)) (line FacilityAmt year if leveraged == 0 & cat == "TermLoanA", color (gs12)) , legend(col(1) order(1 "Revolver" 2 "Term Loan")) title("Investment Grade Market") xtitle("Year") ytitle("Facility Amount in USD bn") ylabel(0(100)500, labsize(small) angle(90) nogrid) xlabel(2002(1)2019, labsize(small) angle(vertical)) xmtick(2002(1)2019, nolabels ticks) graphregion(fcolor(white) lcolor(white) ifcolor(white) ilcolor(white)) name(A, replace); #d cr *Same as table (to be able to read off exact numbers) table year cat if leveraged == 1, c(mean FacilityAmt) format(%9.1f) #d ; twoway (line FacilityAmt year if leveraged == 1 & cat == "Revolver", color (black)) (line FacilityAmt year if leveraged == 1 & cat == "TermLoanA", color (gs12)) (line FacilityAmt year if leveraged == 1 & cat == "TermLoanB", color (black) lpattern(dot) ) , legend(col(1) order(1 "Revolver" 2 "Term Loan - Bank" 3 "Term Loan - Inst." )) title("Leveraged Market") xtitle("Year") ytitle("Facility Amount in USD bn") ylabel(0(100)500, labsize(small) angle(90) nogrid) xlabel(2002(1)2019, labsize(small) angle(vertical)) xmtick(2002(1)2019, nolabels ticks) graphregion(fcolor(white) lcolor(white) ifcolor(white) ilcolor(white)) name(B, replace); #d cr *Same as table (to be able to read off exact numbers) table year cat if leveraged == 1, c(mean FacilityAmt) format(%9.1f) graph combine A B, graphregion(fcolor(white) lcolor(white) ifcolor(white) ilcolor(white)) graph export "$path/3_Results/Figure4 (Europe).pdf", replace graph export "$path/3_Results/Figure4 (Europe).png", replace