The Optimality of Call Provision Terms
研究了固定价格赎回条款中赎回溢价和赎回保护的差异，发现信用质量低和信息不透明的发行人选择更高的赎回溢价和更长的赎回保护，而高质量发行人则相反。
There is substantial variation in fixed-price call provision terms—call price premium and call protection. I investigate determinants of call price, call protection, and estimated call option value. Consistent with agency theory and asymmetric information models, I find that lower credit quality and opaque issuers choose higher call premiums, longer call protection, and overall less valuable call options. Higher-quality issuers, particularly financial institutions that struggle when interest rates are low, do the opposite. This paper was accepted by David Simchi-Levi, finance.