We examine portfolio trading and its impact on corporate bond liquidity. Our theoretical framework identifies how portfolio trades provide dealers with benefits through a diversification channel and with costs through a balance sheet channel. We then test empirically multiple hypotheses on the...

A commonly-accepted retirement goal for a healthy pension is for it to sustain the relatively higher standard-of-living of the latter part of one’s working life throughout retirement. A recent innovation implemented by Brazil in January 2023 might provide a solution to the pension challenges...

Approximately 34% of local municipal bond issues were issued without ratings during 1998 to 2017. We study the circumstances that affect the decision to obtain a rating and whether unrated bonds, controlling for observable risk factors, are more expensive to issue than rated bonds. Issuers are...

We use an original identification strategy to isolate a potential religious bias in traders’ behavior. We analyze the stock market reaction to sukuk issuance during Ramadan. We then isolate the religious component of the trades by comparing the stock market reaction to sukuk and bond issuance...

This paper presents an innovative pandemic bond aimed to buffer the financial blow of pandemics on life insurers and similar entities at risk. Issued by private entities such as (re)insurers, this bond bases its payoff on pandemic data released by public bodies like the World Health...

We analyze the influence of sponsors and major shareholders on the financing cost of financial leasing companies.Based on the natural experiment of financial leasing companies issuing financial bonds,We find the financing cost of financial leasing companies controlled by non-banks is...

This paper uses the Staggered Difference in Differences (DID) method to study the effects of green local government special bonds on carbon emission intensity based on Chinese provincial panel data from 2014-2021. Green local government special bonds can significantly reduce carbon emission...

Using a comprehensive data set of earthquakes in China, we show that investors perceive increased credit risk in quasi-municipal bonds exposed to devastating earthquakes, leading to a significant positive risk premium. Our study identifies that this bias is temporary and decreases as investors...

This study examines the broader US green bond market, focusing the attention on its association with the US traditional equity markets for the period 2016-2021. We propose to use the S&P Green Bond Index and US Aggregate Bond Index, and the S&P 500 in order to build the connection between the...

The recent bailout of Credit Suisse is noteworthy for many reasons. One of them is that, while AT1 bondholders were wiped out, shareholders were not. This violates the ‘absolute priority rule’ which is central to corporate reorganisations and bank resolution regimes. In this article, we...