Focusing on downgrades as stress events that drive the selling of corporate bonds, we show
that the illiquidity of stressed bonds has increased after the Volcker Rule. Dealers regulated …

This paper investigates fire sales of downgraded corporate bonds induced by regulatory
constraints imposed on insurance companies. As insurance companies hold over one-third …

The convention when calculating corporate bond trading costs is to estimate bid–ask
spreads that customers pay, implicitly assuming that dealers always provide liquidity to …

Technology transformed the trading of financial assets but has been slower to come to
corporate bond trading. Combining proprietary data from MarketAxess with regulatory …

Corporate bond spreads are affected by both credit risk and liquidity and it is difficult to
disentangle the two factors empirically. In this paper we separate out the credit risk …

This paper investigates execution quality issues in corporate bond trading. Using an
extensive sample of bond trades by insurance companies, we find that an insurance …

Abstract Using 2002–2014 insurer transactions, we provide the first empirical evidence on
underwriters' allocation practices in the primary market for corporate bonds. Since bonds are …

Many institutional investors depend on the returns they generate to fund their operations and
liabilities. How do these investors' financial conditions affect the management of their …

The deterioration in credit quality of General Motors (GM) and Ford to junk status in the
spring of 2005 caused a wide-spread sell-off in their corporate bonds. Using a novel dataset …

Two intermediary-based factors—a corporate bond dealer inventory measure and a broad
intermediary distress measure—explain more than 40 of the puzzling common variation in …