1 option
The Market for Borrowing Corporate Bonds / Paul Asquith, Andrea S. Au, Thomas R. Covert, Parag A. Pathak.
- Format:
- Book
- Author/Creator:
- Asquith, Paul.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w16282.
- NBER working paper series no. w16282
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2010.
- Summary:
- This paper describes the market for borrowing corporate bonds using a comprehensive dataset from a major lender. The cost of borrowing corporate bonds is comparable to the cost of borrowing stock, between 10 and 20 basis points per year. Factors that increase borrowing costs are loan size, percentage of inventory lent, rating, and borrower identity. Trading strategies based on cost or amount of borrowing do not yield excess returns. Bonds with corresponding CDS contracts are more actively lent than those without. Finally, the 2007 Credit Crunch did not affect average borrowing cost or loan volume, but increased borrowing cost variance.
- Notes:
- Print version record
- August 2010.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.