We examine the relation between analyst forecast characteristics and the cost of debt financing. Consistent with the view that the information contained in analysts' forecasts is economically significant across asset classes, we find that analyst activity reduces bond yield spreads. We also find...

Prior studies have indicated that earnings are useful for bond market investors and that beating earnings benchmarks is related to a firm's lower cost of debt (Jiang, 2008). This study examines whether management earnings forecasts are related to a firm's cost of debt. Our results indicate that...