Factors affecting bond yields: An empirical application on fragile five countries

The yield of the bonds expresses its earnings at the end of the maturity and it has two types of yield. The first type of yield can be called a one-time yield, the profit or loss between the purchase price and the sales price is calculated by dividing the total interest income for that period with the purchase price. This yield may help the investor to take decide whether hold the bonds in portfolio, but factors such as the future of the bonds in the portfolio, future values of market interest rates, positive or negative changes that may occur at the risk of the bonds should be considered when deciding to build a portfolio. The second type of yield is as efficiency as maturity which is called net yield, real yield or active yield. It is the calculated yield of the investment made by the bonds, the periodic revenues to be obtained from the bond term, and the capital gains or losses, if any. The main purpose of research; To investigate the factors affecting bond efficiency in fragile five countries. For this purpose, The analysis has made with the data regression model by taking of Turkey, Brazil, Indonesia, India and South Africa, CDS, GDP, VIX, bonds yield and consumer confidence index data and using annual data between 2007-2016 years. In analysis while bond yield were used as dependent variable, CDS, GDP, VIX and consumer confidence index were used as independent variables. As a result of analysis while there was a meaningful correlation between the CDS, GDP and VIX values and bond yield, the relationship between the consumer confidence index and bond yield was not found. Key Words: Bond Yield, Fragile Five Countries