We derive consistent contingent-claims models for valuing implicit options embedded in structured notes, and use them to compare the cost of fixing the spread with that of fixing the price in bond tender offers. We analyze 289 bond tender offers and find that the cost difference is economically...

I extend Akerlof's (1970) adverse selection model, where uninformed participants withdraw from the market, and show that rather than collapse, "lemons" can, and often do, lead to a negative bubble. A mirror image of his model, where uninformed participants pursue "dreams" (for example,...

We compare reactions in the prices and trading patterns of common stocks and closed-end funds (CEFs), which have substantially different investor clienteles, to the September 11, 2001 terrorist attacks. When the market reopened six days later, retail investors sold and there were sharp price...

We investigate the (sell-side) analyst rankings of Institutional Investor (I/I) and The Wall Street Journal (WSJ) using data from 1993-2005. We find that factors with a primary component of recognition are the most important determinants of the rankings, although performance measures are...

This paper reviews innovative corporate securities through year-end 2000. We describe 80 distinct new securities, which we categorize as 1) debt, 2) preferred stock, 3) convertible securities, and 4) common equity. For each security, we analyze probable sources of value added and provide a brief...

We investigate the (sell-side) analyst rankings of <italic>Institutional Investor</italic> (I/I) and <italic>The Wall Street Journal</italic> (WSJ), using data from 1993–2005. We find that factors with a primary component of recognition are the most important determinants of the rankings, although performance measures are...