Private placement bonds have unique financial contracting in controlling borrower-lender agency conflicts due to direct monitoring and the relative ease of future renegotiation. Our data show that private placements are more likely to have restrictive covenants and are more likely to be issued...

This study examines recommendations made by brokerage and non-brokerage firms to evaluate the differential agency costs across three unique production environments. The results highlight and outline the inherent differences between brokerage and non-brokerage firms' recommendations.

Private placement debt issues are more effective than public bonds in resolving information asymmetries and controlling moral hazard problems. Firms that issue only private placements (non-switchers) are found to have more information problems than firms that have access to the public bond...