Elton, Edwin J.; Gruber, Martin J.; Blake, Christopher R.; … - In: Journal of Financial and Quantitative Analysis 48 (2013) 02, pp. 405-425
This paper provides a new explanation for why closed-end bond funds coexist along with otherwise identical open-end bond funds. Closed-end bond funds offer investors the opportunity to leverage their fixed income investment at very low borrowing rates and are attractive to investors for this...