Showing 1 - 10 of 13
Persistent link: https://www.econbiz.de/10013191680
We show that larger trades incur lower trading costs in government bond markets (“size discount”), but costs increase in trade size after controlling for clients’ identities (“size penalty”). The size discount is driven by the cross-client variation of larger traders obtaining better...
Persistent link: https://www.econbiz.de/10013231652
Contrary to the prediction of the classic adverse selection theory, a more informed trader could receive better pricing relative to a less informed trader in over‑the‑counter financial markets. Dealers chase informed orders to better position their future quotes and avoid winner’s curse in...
Persistent link: https://www.econbiz.de/10013290336
We show that larger trades incur lower trading costs in government bond markets ('size discount'), but costs increase in trade size after controlling for clients’ identities (‘size penalty’). The size discount is driven by the cross‑client variation of larger traders obtaining better...
Persistent link: https://www.econbiz.de/10013290337
I analyze the interaction between buyers' information acquisition and market liquidity in over-the-counter markets with adverse selection. If a buyer anticipates that future buyers will acquire information about asset quality, she has an incentive to acquire information to avoid buying a lemon...
Persistent link: https://www.econbiz.de/10012895073
Persistent link: https://www.econbiz.de/10014486424
Persistent link: https://www.econbiz.de/10012050929
Persistent link: https://www.econbiz.de/10014231881
Persistent link: https://www.econbiz.de/10013466386
Persistent link: https://www.econbiz.de/10011746951