Drexel Burnham Lambert's bankruptcy and the subsequent decline in underwriter fees

• 成果类型: Article
• 署名作者: Livingston, Miles; Williams, Glenn
• 署名单位: State University System of Florida; University of Florida; State University System of Florida; Florida Atlantic University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2006.03.006
• 发表日期: 2007
• 页码: 472-501
• 关键词: commercial banks; Underwriters; Drexel Burnham Lambert

摘要

In the 1980s, Drexel Burnham Lambert dominated the underwriting of junk bonds with close to a 50% market share. In 1990, Drexel went bankrupt and was liquidated, and the percentage underwriting fees for junk bonds subsequently dropped dramatically. We present strong evidence that the exit of Drexel Burnham Lambert and the resulting increase in competition for market share were major contributing factors to the decline in junk bond underwriter fees. (c) 2006 Elsevier B.V. All rights reserved.