Author: Samuel HuberPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Centralized Trading of Corporate Bonds
Author: Samuel HuberShould Corporate Bond Trading be Centralized?
Author: Sebastien PlantePublisher:
ISBN:
Category :
Languages : en
Pages : 122
Book Description
This paper shows that centralizing the US corporate bond market would yield large gains in efficiency. By studying two markets where corporate bonds are successfully traded on central limit order books, I estimate that the transaction costs of US corporate bonds would decrease by 70% on average if trading migrated from over-the-counter markets to limit order markets. To study the social value of reforming the corporate bond market, I build a parsimonious model of centralized and decentralized trading. The model implies that the optimal market structure can be determined by appropriately scaling the transaction costs associated with each market structure. Estimating the scaling factors reveals that moving to limit order markets would generate a social surplus equal to 21 bps of total par value. Large bond issues with low credit ratings and long time to maturity would benefit the most.
Should Corporate Bond Trading Be Centralized?
Author: Sebastien PlantePublisher:
ISBN:
Category :
Languages : en
Pages : 59
Book Description
This paper shows that centralizing the US corporate bond market would yield large gains in efficiency. By studying two markets where corporate bonds are successfully traded on central limit order books, I estimate that the transaction costs of US corporate bonds would decrease by 70% on average if trading migrated from over-the-counter markets to limit order markets. To study the social value of reforming the corporate bond market, I build a parsimonious model of centralized and decentralized trading. The model implies that the optimal market structure can be determined by appropriately scaling the transaction costs associated with each market structure. Estimating the scaling factors reveals that a centralized market structure would be optimal for 91% of the bonds studied. For the average bond, moving to limit order markets would generate a social surplus equal to 1.28% of total par value. Large bond issues with low credit ratings and long time to maturity would benefit the most.
Corporate Bonds
Author: Richard C. WilsonPublisher: John Wiley & Sons
ISBN: 9781883249076
Category : Business & Economics
Languages : en
Pages : 414
Book Description
Corporate Bonds: Structures & Analysis covers every aspect of corporate bonds, including bond structures, credit analysis, and investment strategies. This book discusses state-of-the-art technology for valuing corporate bonds, as well as innovative new products such as step-up notes and range notes. Complete with contributions from today's top financial experts, Corporate Bonds is the definitive reference for this vital market.
Markets for Corporate Debt Securities
Author: T. Todd SmithPublisher: International Monetary Fund
ISBN: 1451848870
Category : Business & Economics
Languages : en
Pages : 88
Book Description
This paper surveys markets for corporate debt securities in the major industrial countries and the international markets. The discussion includes a comparison of the sizes of the markets for various products, as well as the key operational, institutional, and legal features of primary and secondary markets. Although there are some signs that debt markets may be emphasized in the future by some countries, it remains true that North American debt markets are the most active and liquid in the world. The international debt markets are, however, growing in importance. The paper also investigates some of the reasons for the underdevelopment of domestic bond markets and the consequences of firms shifting their debt financing needs from banks to securities markets.
An Anatomy of Corporate Bond Markets: Growing Pains and Knowledge Gains
Author: Li L. OngPublisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451861716
Category :
Languages : en
Pages : 25
Book Description
The objective of this paper is to discuss the key issues relating to the development of local corporate bond markets. We examine the requirements for local corporate bond market development, and compare and contrast experiences across both mature and emerging markets. We suggest that core aspects such as benchmarking, corporate governance and disclosure, credit risk pricing, the availability of reliable trading systems, and the development of hedging instruments are fundamental for improving the breadth and depth of corporate debt markets. The demand and supply of corporate bonds are dependent on factors such as the investor base, both local and foreign, and government policies toward the issuance process and associated costs, as well as the taxation regime. The sequencing of reforms is key to market development.
On the Dynamics of Corporate Bond Ownership
Author: Massimo MassaPublisher:
ISBN:
Category :
Languages : en
Pages : 67
Book Description
We examine the dynamic ownership structure of corporate bonds after initial issuance. We find that as bonds “season”, the market learns more about them. This learning leads to less concentrated bond ownership over time. Specifically, learning induces a shift in bond ownership from more informed short-term investors to less informed long-term investors. This shift in ownership is accompanied by reduced trading volume and lower expected returns. Utilizing firm-level credit rating reports from Standard & Poor's, we identify that the source of learning is related to macro- and industry-level information and the term structure of interest rate rather than firm-level cash flow news. Our results suggest that regulations that facilitate easier access to information and better learning, such as centralizing corporate bond trading, could encourage more participation and benefit a wider spectrum of investors.
The Handbook of China's Financial System
Author: Marlene AmstadPublisher: Princeton University Press
ISBN: 0691205841
Category : Business & Economics
Languages : en
Pages : 504
Book Description
A comprehensive, in-depth, and authoritative guide to China's financial system The Chinese economy is one of the most important in the world, and its success is driven in large part by its financial system. Though closely scrutinized, this system is poorly understood and vastly different than those in the West. The Handbook of China’s Financial System will serve as a standard reference guide and invaluable resource to the workings of this critical institution. The handbook looks in depth at the central aspects of the system, including banking, bonds, the stock market, asset management, the pension system, and financial technology. Each chapter is written by leading experts in the field, and the contributors represent a unique mix of scholars and policymakers, many with firsthand knowledge of setting and carrying out Chinese financial policy. The first authoritative volume on China’s financial system, this handbook sheds new light on how it developed, how it works, and the prospects and direction of significant reforms to come. Contributors include Franklin Allen, Marlene Amstad, Kaiji Chen, Tuo Deng, Hanming Fang, Jin Feng, Tingting Ge, Kai Guo, Zhiguo He, Yiping Huang, Zhaojun Huang, Ningxin Jiang, Wenxi Jiang, Chang Liu, Jun Ma, Yanliang Mao, Fan Qi, Jun Qian, Chenyu Shan, Guofeng Sun, Xuan Tian, Chu Wang, Cong Wang, Tao Wang, Wei Xiong, Yi Xiong, Tao Zha, Bohui Zhang, Tianyu Zhang, Zhiwei Zhang, Ye Zhao, and Julie Lei Zhu.
The Inter-Bank Bond Market in the People’s Republic of China
Author: Asian Development BankPublisher: Asian Development Bank
ISBN: 9292623427
Category : Business & Economics
Languages : en
Pages : 347
Book Description
The ASEAN+3 Bond Market Guide series provides country-specific information on the investment climate, rules, laws, opportunities, and characteristics of local bond markets in Asia and the Pacific. It aims to help bond market issuers, investors, and financial intermediaries understand the local context and encourage greater participation in the region’s rapidly developing bond markets. This edition focuses on the Inter-Bank Bond Market in the People’s Republic of China, which is one of the country’s most important bond markets and one of only two that are accessible to foreign investment.
Introduction to Business
Author: Lawrence J. GitmanPublisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 1455
Book Description
Introduction to Business covers the scope and sequence of most introductory business courses. The book provides detailed explanations in the context of core themes such as customer satisfaction, ethics, entrepreneurship, global business, and managing change. Introduction to Business includes hundreds of current business examples from a range of industries and geographic locations, which feature a variety of individuals. The outcome is a balanced approach to the theory and application of business concepts, with attention to the knowledge and skills necessary for student success in this course and beyond. This is an adaptation of Introduction to Business by OpenStax. You can access the textbook as pdf for free at openstax.org. Minor editorial changes were made to ensure a better ebook reading experience. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution 4.0 International License.