This paper examines the role of search frictions in convertible bond pricing. Using a sample of 533 Rule 144-A issues for the years 1997-2007, we examine two channels through which search frictions might impact initial pricing: the ease of attracting initial investors and expected after-market...

This paper examines the potential impact of capital supply on security issuance. We focus on the role of convertible bond arbitrageurs as suppliers of capital to issuers of convertible bonds. We estimate a simultaneous equations model of demand and supply of convertible bond capital, linking the...