Corporate bond investors are compensated for liquidity and counter-party risk in the yield received in excess of the … credit premium and risk-free rate. This paper shows that the liquidity premium as a hedge against uncertain future states is … interest rate risk. The liquidity premium increases with the time that investors must wait for compensation. The results …

This paper shows that bond market liquidity plays an important role in determining corporate debt contracts. We find … exogenous shock to bond market liquidity, and an instrumental variable regression controlling for the endogeneity of bond … that bonds with better expected market liquidity are issued with fewer restrictive covenants, longer maturities, and lower …

This study analyses how liquidity risk affects bonds' yield spreads after controlling for credit risk, bond …-specific characteristics and macroeconomic variables. Using two liquidity estimates, LOT liquidity and the bid-ask spread, we find that, in … particular, the LOT liquidity measure has explanatory power for the yield spread of green bonds. Overall, however, the impact of …

banks had a large impact on exposed bonds' liquidity. Moreover, based on these ties, we show that bond mutual fund panic …