We analyze trading opportunities that arise from differences between the bond and the CDS market. By simultaneously … entering a position in a CDS contract and the underlying bond, traders can build a default-risk free position that allows them … to repeatedly earn the difference between the bond asset swap spread and the CDS, known as the basis. We show that the …

markets' interpretation of the stock split. We examine corporate bond issues around stock splits and find a significant … decline in the bond yield spread following stock splits, supporting the signaling hypothesis. We also confirm improvements in …

The aim of the present research is to provide a new CoCo bond pricing method to assist analyses of both equity …

Eurobonds from the US, Europe, and other countries around the world, we show that bond performance around M&A announcements is …

Expectations of risky bond payments are unobservable and recovery rates for sovereigns are hard to estimate because …

between the level of cash holdings and post-announcement corporate bond returns. Our findings support the agency cost of cash …

We examine the dynamics of bond correlation using a broad sample of US corporate bonds, and document that bond … correlation varies heavily over time. We attribute this variation in bond correlation to variation in risk factor correlation … sentiment decreases, i.e., corporate bond investors exhibit stronger flight-to-quality when their sentiment is low. Thus, low …