We use a difference-in-differences framework to estimate the causal effects of the Federal Reserve's Primary and Secondary Market Corporate Credit Facilities (CCFs) on corporate bond credit spreads. In particular, we exploit the publication of the constituents of the SMCCF Broad Market Index to...

The rapid rise of corporate bond portfolio trading since the end of 2017 has attracted attention from practitioners and regulators alike. I show that inventory hedging explains the recent meteoric rise of corporate bond portfolio trading, likely aided by the recent proliferation of credit index...

Many assets are traded in decentralized markets intermediated by dealers. In these markets, search frictions lead to trading illiquidity. Moreover, terms of trade are negotiated between investors and dealers pursuant to strategic bargaining. Investors’ intrinsic types affect both their outside...