We examine the wealth effects of mergers and acquisitions on target and acquiring firm bondholders in the 1980s and 1990s. Consistent with a coinsurance effect, below investment grade target bonds earn significantly positive announcement period returns. By contrast, acquiring firm bonds earn...

We investigate the effect of growth opportunities in a firm's investment opportunity set on its joint choice of leverage, debt maturity, and covenants. Using a database that contains detailed debt covenant information, we provide large-sample evidence of the incidence of covenants in public debt...

In this paper, we study the FDIC's Temporary Liquidity Guarantee Program to examine the effectiveness of this government sponsored solution to the current banking crisis. We explore the impact of the program on the liquidity and credit crisis in the debt markets and the market value of the FDIC...