Raising Bond Capital in Segmented Markets
研究发现经济不景气时公司债券发行溢价飙升，主承销商对投资者的偏袒加剧了这一现象，而弹性投资者有助于市场吸收大规模发行，为债券发行政策提供参考。
Abstract The difference between corporate bond yields at issuance and in secondary markets, the “issuance premium,” spikes in bad times, raising firms’ capital costs. Using new bond-level data and high-frequency variation in bond supply and demand, I estimate a model of primary markets with imperfectly elastic investors, endogenous bond supply, and underwriter frictions that quantifies drivers of issuance premiums. I find underwriters’ favoritism toward investors increases issuance premiums’ levels and cyclical variation. On the other hand, relatively elastic investors allow primary markets to absorb large bond issuances. My findings inform policies targeted at bond issuance markets.