In this paper, we discuss the solvability of backward stochastic differential equations(BSDEs) with superquadratic generators. We first prove that given a superquadraticgenerator, there exists a bounded terminal value, such that the associated BSDEdoes not admit any bounded solution. On the...

In OTC bond markets many investors face high costs of trade, and these costs appear to berelated to the lack of price transparency. We study the consequences this has for efficient pricediscovery. Prices of municipal bonds react sluggishly to macroeconomic news. Yield spreads overtreasuries...