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Measuring the Perceived Liquidity of the Corporate Bond Market

The liquidity of corporate bond markets is crucial to their functioning. This paper proposes a novel measure of bond market liquidity based on portfolio holdings instead of transaction data. The measure can be applied to asset-backed securities, syndicated loans, and municipal securities for which publicly available data on transactions are not available.

Corporate Leadership and Creditor Recovery Rates: Evidence from Executive Gender

This paper examines the relationship between executive gender and creditor recovery rates, showing that creditors to female-run firms have higher recovery rates in the event of default.

'Green Bonds' May Be Our Best Bet for Environmental Damage Control

The popularity of green bonds as a way to finance environmentally friendly projects is on the upswing, say Malcolm Baker and George Serafeim. Open for comment; 0 Comments.

Financing the Response to Climate Change: The Pricing and Ownership of US Green Bonds

Green bonds are used for environmentally friendly purposes like renewable energy. Complementing previous research, this paper explores the US corporate and municipal green bond and shows that a subset of investors is willing to give up some return to hold green bonds.

The Impact of Pensions and Insurance on Global Yield Curves

The global financial crisis and its aftermath had a dramatic impact on the solvency of pension funds and insurance companies. Drawing on a large cross-section of countries, this paper shows the importance of pension and insurance companies in determining the yields on long maturity bonds around the world.

Debt Redemption and Reserve Accumulation

This study examines how reserve accumulation affects governments’ decisions to default. The analysis assumes that countries can accumulate reserves and borrow internationally using their own currency. Results suggest that the optimal level of international reserves is fairly large because their cost is mitigated by valuation-smoothing gains. The model matches some features of Brazil’s economic fluctuations.

A Quantity-Driven Theory of Term Premia and Exchange Rates

This paper provides a framework for understanding how the detailed structure of financial intermediation affects foreign exchange rates.