Correlation between the government bonds, CDS and Corporate bond yield for Deutsche Bank in Germany

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ACKNOWLEDGEMENT

No words can express my appreciation and gratitude to my research advisor _______ through the course of this research, Professor _____has taught me numerous values that extend well beyond the realm of _________ (Your Subject Name). His emphasis on dedication to work and his valuable and practical insights of life are some of the major highlights of my education at The University _________.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for the academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

LIST OF CHARTS AND TABLESVI

CHAPTER 3: METHODOLOGY1

3.1 Outline of quantitative and qualitative approaches to conducting research1

3.2 Research approach used in this study1

3.2.1 Justification of using mixed method to research2

3.3 Instruments used3

3.3.1 Correlation analysis3

3.3.2 Secondary data collection4

3.4 Data analysis tool4

3.5 Summary4

CHAPTER 4: DISCUSSION AND ANALYSIS5

4.1 Overview of Germany and Deutsche bank5

4.2 The significance of bond markets8

4.3 Credit risk in bond market11

4.3.1 Credit Default Swaps (CDS): A hedging measure against credit risk12

4.4 An overview of the theory of government bonds12

4.5 Types of government bonds13

4.5.1 Domestic Bonds13

4.5.2 Foreign Bonds14

4.5.3 Eurobonds15

4.6 European and Germany bond markets: Developed bond markets15

4.7 The pricing strategy of corporate bonds17

4.8 The relationship between yield from government bonds, Certificate of Deposit, and Corporate bond yield in Germany19

4.9 Summary of results and analysis25

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS26

5.1 Limitations of the research26

5.2 Recommendations for future study26

5.3 Implications of the research27

5.4 Conclusions28

REFERENCES30

APPENDIX33

Appendix A: Yield pattern of different variables in the research33

LIST OF CHARTS AND TABLES

CHART 1: DESCRIPTIVE STATISTICS20

CHART 2: GRAPHICAL RELATIONSHIP21

CHART 3: GRAPHICAL REPRESENTATION OF RELATIONSHIP BETWEEN VARIABLES23

TABLE 1: DESCRIPTIVE STATISTICS19

TABLE 2: CORRELATION MATRIX22

CHAPTER 3: METHODOLOGY

In chapter 3, we have provided a comprehensive description of the selected research design, which has guided the researcher in the course of the study. In this chapter, we have expanded on the different components of the research design, particularly, the approach for conducting research in the study.

3.1 Outline of quantitative and qualitative approaches to conducting research

Amongst most famous approaches to conducting research that is utilized by researchers to make informed decisions includes quantitative and qualitative methods to conduct research (Neuman 2005, 36). There are a number of differences between qualitative and quantitative approach to research, which lies in their strategy to identify the problems of the research and literature review. The two different strategies have completely diverse strategies in determining the rationale, collection of data, analysis of collected data, describing, and measuring the research outcomes (Kumar 2007, 34). In the process of identification of a problem of a research, Creswell (2005) had made a claim that it is an explanatory and descriptive for quantitative approach to research and exploratory approach for conducting qualitative research.

3.2 Research approach used in this study

In this research study, the dissertation has used both primary and secondary research ...