Quote Competition in Corporate Bonds

• 成果类型: Article
• 署名作者: Hendershott, Terrence; Li, Dan; Livdan, Dmitry; Schurhoff, Norman; Venkataraman, Kumar
• 署名单位: University of California System; University of California Berkeley; Federal Reserve System - USA; Federal Reserve System Board of Governors; Center for Economic & Policy Research (CEPR); University of Lausanne; University of Lausanne; Swiss Finance Institute (SFI); Southern Methodist University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082; 1540-6261
• DOI: 10.1111/jofi.70048
• 发表日期: 2026-08
• 页码: 2165-2216
• 关键词: PRE-TRADE TRANSPARENCY; market transparency; execution costs; dealer; Nasdaq; microstructure; liquidity; auction; search

摘要

Dealer quotes in corporate bonds, though indicative, lower trading costs and increase trading volume. Dealers offering higher quality quotes attract more order flow and execute trades at favorable prices. Dealers advertise quotes to manage their inventories and attract orders from nonrelationship clients. However, quote competition is imperfect. The best quotes often fail to attract orders, and trade-throughs are common. Nevertheless, quote competition is important as clients exploit quotes from other dealers in negotiations, forcing dealers with lower quality quotes to offer price improvements. Quoting is not a zero-sum game, as more active bond-level quoting leads to more bond-level trading.