McConnell, John J.; Saretto, Alessio - In: Journal of Financial Economics 97 (2010) 3, pp. 451-469
The market for auction rate securities (ARS) made headlines during the second week of February 2008 when auctions at which the bonds' interest rates reset experienced a wave of "failures." Contrary to headlines that attribute the failures to a "frozen" market or investors' "irrationality," we...