Abstract:

Investment banks can provide funds and convert those funds into financial investment instruments. With these characteristics, investment banks form an important part of the economy of the country in which they are located and also represent one of the most important sectors. These banks, which are traded on the stock exchange, are empowered to provide the markets with long-term funds such as bonds to meet the requirements of private companies and governments. Alternative instruments for raising capital are needed for economic development projects. Bonds are financial instruments issued to provide financing on favorable terms. Bonds are one of the financial instruments that provide funds to the exporter through borrowing. Access to capital for development through bond issuance enables the development of debt capital markets and contributes to the growth of their markets. The main motivation of this study is to determine whether there is a relationship between ten-year bond yields and investment bank stock values traded on BIST 100. The dataset used in the study covers the period of 2015-2020. This dataset consists of the stock values of Turkey Investment and Development Bank Incorporated Company (Inc.), GSD Investment Bank Inc., Merrill Lynch Investment Bank Inc., Credit Agricole Investment Bank Turk Inc., and the ratios of ten-year bond yields of Turkey. As the methodology of the study, the methods of linear regression modeling, correlation, and gamma (γ)-relationship coefficient were applied. As a result of the evaluation, the relationship between the BIST 100 investment banks' stock values and ten-year bond yields is statistically significant at the 0.05 confidence level.

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