Raising Bond Capital in Segmented Markets

• 成果类型: Article; Early Access
• 署名作者: Siani, Kerry Y.
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454; 1465-7368
• DOI: 10.1093/rfs/hhaf092
• 发表日期: 2026-03-27
• 关键词: G23; E44; G32; E52; initial public offerings; CORPORATE-DEBT MATURITY; asset price dynamics; Bank relationships; term structure; INVESTMENT; allocation; QUALITY; demand; CHOICE

摘要

The difference between corporate bond yields at issuance and in secondary markets, the issuance premium, spikes in bad times, raising firms' capital costs. Using new bond-level data and high-frequency variation in bond supply and demand, I estimate a model of primary markets with imperfectly elastic investors, endogenous bond supply, and underwriter frictions that quantifies drivers of issuance premiums. I find underwriters' favoritism toward investors increases issuance premiums' levels and cyclical variation. On the other hand, relatively elastic investors allow primary markets to absorb large bond issuances. My findings inform policies targeted at bond issuance markets.