Sequential Search for Corporate Bonds

• 成果类型: Article; Early Access
• 署名作者: Kargar, Mahyar; Lester, Benjamin; Plante, Sebastien; Weill, Pierre-Olivier
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; Federal Reserve System - USA; Federal Reserve Bank - Philadelphia; University of Wisconsin System; University of Wisconsin Madison; University of California System; University of California Los Angeles; National Bureau of Economic Research; Center for Economic & Policy Research (CEPR)
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082; 1540-6261
• DOI: 10.1111/jofi.70068
• 发表日期: 2026-08-10
• 关键词: trading costs; models; MARKET; price; TRANSPARENCY; illiquidity; liquidity

摘要

Customers in over-the-counter (OTC) markets must find a counterparty to trade. Little is known about this process, however, because existing data consist of transaction records, which only reveal the outcome of a search. Using data from a trading platform for corporate bonds, we unpack the search process. We analyze how long it takes customers to trade and how dealers' offers evolve across repeated inquiries. We estimate that it takes two to three days to complete a transaction after an unsuccessful attempt, with substantial variation across trade and customer characteristics. Our analysis offers insights into the sources of trading delays in OTC markets.