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...

This study examines whether and how news sentiment about interest rate changes predicts bond risk premia in a leading emerging market, Korea, where sovereign bond yields set benchmarks for other domestic bonds. Using machine learning techniques, we construct the monthly Bond News Sentiment Index...

The rise of sustainable investing in fixed-income markets has led to a variety of special types of bonds. In addition to green bonds that are predominantly used to provide capital for the energy transition, recently also social, sustainability, and sustainability-linked bonds have appeared in...

Favorable tax treatment of coupon income, and unfavorable treatment of capital gains, lead municipal bonds to be issued with coupon rates substantially above market rates and an accompanying original issue premium. We present evidence that the size of the original issue premium is a response to...