A Multistage Stochastic Programming Model with Multiple Objectives for the Optimal Issuance of Corporate Bonds

Large corporations usually cover their capital and operating expenses by issuing bonds with fixed rates different maturities. This paper proposes a multistage stochastic programming (MSP) model multiple objectives to optimize bond issuance satisfying the three common of corporate managers, as follows: (i) Minimizing expected discounted cost under cash liquidity financial leverage risk constraints. (ii) (iii) We measure conditional payment-at-risk ( C P a R ), according corporation’s characteristics. Financial is captured leverage-at-risk id="M2"> F L , which we design based on value-at-risk id="M3"> V ). Through empirical analysis company in China, explore efficient frontier curves for above provide corresponding compositions an optimal portfolio. Our MSP offers guidance achieving trade-off between when bonds.