We propose a model in which sticky expectations concerning short-term interest rates generate joint predictability patterns in bond and currency markets. Using our calibrated model, we quantify the effect of this channel and find that it largely explains why short rates and yield spreads predict...

This paper examines the relationship between green bonds and cryptocurrencies that specifically follow the Proof-of-Stake consensus mechanism. A lot has been discussed about the positive bi-directional and asymmetric relationship between green bonds and bitcoins, the most widely known...

The purpose of this study is to investigate the ESG performance of companies that issue green bonds.We select non-financial listed companies as samples from 2012 to 2020 and construct a quasi-natural experiment. Empirical analysis is conducted using a difference-in-differences model to examine...

This study examines the impact of investors’ site visits on the pricing of bond issues using data from the Shenzhen Stock Exchange-listed companies’ bonds issued from 2014 to 2020. Our investigation reveals a significant correlation between investors’ site visits and a lower bond spread,...

In recent years, life insurers have increased their exposure to socially controversial bonds from alcohol, tobacco, and gaming sectors, which contradicts social-norm constraints of such institutional investors. We show empirically that the practice of investment delegation contributes to the...

Sustainability-Linked Bonds (SLBs) are a novel fixed income instrument linked to the achievement of predefined sustainability performance targets. The innovation of SLBs is a penalty mechanism – typically a coupon step-up – intended to incentivize the issuer to deliver on climate goals with...

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...