Agenda

17 Nov 2021 12:15

Stanislava Nikolova - Dealer behavior and the trading of newly issued corporate bonds

Meeting Room 1 (San Giobbe Economics Campus) + Live streaming (ZOOM)

Stanislava Nikolova, College of Business, University of Nebraska-Lincoln (USA),
Visiting Scholar Department of Economics, Ca' Foscari University of Venice
(co-authored with M. Goldstein and E. Hotchkiss)

Abstract: This paper examines dealers' secondary market trading in newly issued corporate bonds to understand who gains from aftermarket sales to customers at higher prices. Retail investors largely purchase bonds from non-underwriters at increasing prices, while institutions buy from underwriters at higher prices initially but lower prices longer term. Non-underwriters derive market power from their ability to reach investors with weak trading connections to underwriters, while underwriters benefit from a short-lived information advantage obtained from the bookbuilding process. Overall, most gains from selling bonds at higher secondary market prices accrue to non-underwriters, and are unlikely to be recaptured by issuers

The seminar can be attended also remotely, connecting to ZOOM: https://unive.zoom.us/j/82628576137 - Meeting ID 826 2857 6137

Lingua

L'evento si terrà in inglese

Organizzatore

Department of Economics (InSeminars)

Link

https://unive.zoom.us/j/82628576137

Cerca in agenda