Security design, which broadly speaking deals with the issue of designing optimal
contractual mechanisms for overcoming various frictions between agents, is the subject of …

This paper shows that securities with nonlinear payoff designs can foster household risk‐
taking. We demonstrate this effect by exploiting the introduction of capital guarantee …

I study the causal effect of investors' demand for corporate bonds on nonfinancial firms'
corporate finance and investment activities, using granular data on US insurance …

We survey institutional investors about their role in capital structure decisions and views on
capital structure theories. Over 82% of investors believe they influence corporate capital …

Packaged private placements (PPP) in Australia allow all eligible shareholders to purchase
shares at the same price as offered to institutions in the private placement component of the …

Buy-and-hedge intermediaries are important investors in the convertible bond market as
they intermediate between firms that require capital quickly and investors requiring time to …

Convertible bonds are an important segment of the corporate bond market although their
pricing is compromised by the presence of complex option features and difficulty in …

We find that the average holding period of newly issued convertible bonds by convertible
arbitrage hedge funds is approximately 11.6 months, which on average represents only 14 …

Abstract We revisit Stein (1992)'s model and demonstrate that it provides an insufficient
justification for the use of callable convertible bonds as financing instruments. A standard …

This article examines the severity of the 2008 arbitrage crash in the convertible bond market
by estimating how expensive it would have been to liquidate portfolio securities immediately …