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Liquidity and price pressure in the corporate bond market: evidence from mega-bonds

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dc.contributor.authorHelwege, Jean
dc.contributor.authorWang, Liying
dc.date.accessioned2024-01-16T03:43:14Z
dc.date.issued2021
dc.date.updated2022-09-25T08:17:42Z
dc.description.abstractLarger bonds offer greater liquidity, which should reduce their yields. A simple way for firms to reduce financing costs is to sell bonds with large face values. We find that mega-bonds are more liquid than smaller bonds. However, offering yield spreads on mega-bonds are not lower and are higher than spreads of bonds issued by similar companies. The discount applied to large new issues is consistent with price pressure effects that are also present in the secondary market prices of the issuing firm's existing bonds. Our results suggest a hidden cost to issuing very liquid bonds.en_AU
dc.format.mimetypeapplication/pdfen_AU
dc.identifier.issn1042-9573en_AU
dc.identifier.urihttp://hdl.handle.net/1885/311487
dc.language.isoen_AUen_AU
dc.publisherElsevieren_AU
dc.rights© 2021 The authorsen_AU
dc.sourceJournal of Financial Intermediationen_AU
dc.subjectCorporate bondsen_AU
dc.subjectLiquidityen_AU
dc.subjectPrice pressureen_AU
dc.subjectMega-bondsen_AU
dc.subjectOffering yield spreadsen_AU
dc.titleLiquidity and price pressure in the corporate bond market: evidence from mega-bondsen_AU
dc.typeJournal articleen_AU
local.bibliographicCitation.issue2021en_AU
local.bibliographicCitation.lastpage16en_AU
local.bibliographicCitation.startpage1en_AU
local.contributor.affiliationHelwege, Jean, College of Business and Economics, ANUen_AU
local.contributor.affiliationWang, Liying, University of Nebraska-Lincolnen_AU
local.contributor.authoruidAdelson, Jean, u1046061en_AU
local.description.embargo2099-12-31
local.description.notesImported from ARIESen_AU
local.identifier.absfor350202 - Financeen_AU
local.identifier.ariespublicationu5954577xPUB1en_AU
local.identifier.citationvolume48en_AU
local.identifier.doi10.1016/j.jfi.2021.100922en_AU
local.identifier.scopusID6603379871
local.publisher.urlhttps://www.sciencedirect.com/en_AU
local.type.statusPublished Versionen_AU

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