The market for new issues of municipal bonds: The roles of transparency and limited access to retail investors

• 成果类型: Article
• 署名作者: Schultz, Paul
• 署名单位: University of Notre Dame
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2012.07.004
• 发表日期: 2012
• 页码: 492-512
• 关键词: Municipal bond; DEALER MARKET; TRANSPARENCY

摘要

I examine how transparency and interdealer trading affects prices investors pay in municipal bond offerings. Real-time trade reporting for municipal bonds started January 31, 2005. The dispersion of purchase prices fell sharply at that time. There was little impact on average markups for most trades, but they increased for purchases of more than $100,000. Bonds often pass through a series of dealers before being placed with a buy-and-hold investor. As the interdealer trades progress, trade sizes decline and trade prices rise. Markups on investor purchases increase with the amount of interdealer trading before the trade. (C) 2012 Elsevier B.V. All rights reserved.