We estimate the response of corporate bond credit spreads to three exogenous shocks: oil supply, investment-specific technology, and government spending. Credit spreads respond significantly to these macroeconomic shocks; the response is similar in magnitude, opposite in sign, and with a slight...

Consensus professional forecasts of stock returns are three times more volatile than those of non-professionals and econometricians. This "excess" volatility in professional forecasts is not due to noise. Rather, professional forecasts respond immediately, strongly, and countercyclically to...

We estimate corporate bond portfolios using numerous asset-specific characteristics. Our portfolio weights accommodate a large cross-section and allow for a flexible management of turnover and liquidity. A portfolio tilted toward higher maturity, credit risk, coupon, momentum, and size...

We study the impact of transparency on liquidity in OTC markets. We do so by providing an analysis of liquidity in a corporate bond market without trade transparency (Germany), and comparing our findings to a market with full post-trade disclosure (the U.S.). We employ a unique regulatory...

We empirically study how underwriters' inventory capacity effects corporate bond offerings. We find that allocations to relationship investors increase when inventory capacity across underwriters is low. The outsourcing of inventory by underwriters causes offerings of syndicates with stronger...

We study how changes in the economic and regulatory conditions alter the informativeness of credit ratings, accounting for securities' information acquisition costs. Using the financial crisis and the Dodd-Frank Act as shocks in the US corporate bond market, we find that the informativeness of...

We study the impact of transparency on liquidity in OTC markets. We do so by providing an analysis of liquidity in a corporate bond market without trade transparency (Germany), and comparing our findings to a market with full post-trade disclosure (the U.S.). We employ a unique regulatory...

We show that a firm's access to the corporate bond market is constrained by its bank's trading networks. Using a hand-collected dataset of aggregate portfolio transactions between a bank's securities dealer and their institutional investor's clients, we map the trading networks of banks'...