Avery, Robert B; Belton, Terrence M; Goldberg, Michael A - In: Journal of Money, Credit and Banking 20 (1988) 4, pp. 597-610
This study evaluates the potential for bank subordinated notes and debentures to enhance market discipline by analyzing the sensitivity of the interest-rate spread between bank-related debt and comparable Treasury securities to measu res of bank risk. The analysis indicates that the market...