In this paper, we document and rationalize the premium paid by bond issuers in the corporate bond markets. Changes in the bond market over the past thirty years have shifted the new issue pricing risk from investors to banks and back to investors, with large institutional investors acting as a...

Whereas the callable-bond market used to emphasize primarily public debt - Government Agencies, and both investment grade and non-investment corporate debt - that has changed dramatically over the past twenty years, in part due to the low prevailing rates of interest as well as some systematic...