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This paper provides an empirical test of the demand side of Thakor's (1982) theory of bond insurance signaling, namely … information in the market. We test the theory for a sample of bonds that covers before, during and immediately after the 2007 …-08 financial crisis. We find empirical evidence consistent with the theory that the bond insurance premium provides a signal to the …
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Participants in student loan programs must repay loans in full regardless of whether they complete college. But many students who take out a loan do not earn a degree (the dropout rate among college students is between 33 to 50 percent). The authors examine whether insurance against...
Persistent link: https://www.econbiz.de/10014199318
Participants in student loan programs must repay loans in full regardless of whether they complete college. But many students who take out a loan do not earn a degree (the dropout rate among college students is between 33 to 50 percent). The authors examine whether insurance against...
Persistent link: https://www.econbiz.de/10014190564
Past cycles of sovereign lending and default suggest that debt crises will recur at some point. This book shows why investors should reckon with similar credit events in the future. Surveying the sovereign bond market, the author provides investors with a useful toolkit for analyzing sovereign...
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