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This paper analyzes the effects of public information in a perfect competition trading model populated by asymmetrically informed short-horizon investors with different levels of private information precision. We first show that information asymmetry reduces the amount of private information...
Persistent link: https://www.econbiz.de/10013067286
This paper analyzes the effects of public information in a perfect competition trading model populated by asymmetrically informed short-horizon investors with different levels of private information precision. We first show that information asymmetry reduces the amount of private information...
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Using a comprehensive dataset of mutual funds' quarterly holdings of credit default swap (CDS) contracts during 2007-2011, we analyze the motives for and consequences of mutual funds' participation in the CDS market pre- and post-financial crisis. Consistent with theoretical work, funds resort...
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