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 …

banks will show an increase in performance when the percentage of bond issuance as an external funding source is more than …

investigate the impact of Islamic and Conventional Financials on shareholders' wealth, this study takes the profitability ratios … from the period between 2010 and 2015 and compares the profitability of both financials. The findings reveal the Islamic … Financials (Sukuk) to be a significantly high source of profitability for a company along with the other clients' catchy …

In contrast to prior equity market results, we document that corporate bonds issued by low profitability firms … outperform bonds issued by highly profitable firms. This performance difference is primarily driven by low profitability, low … credit rating firms. This profitability premium is consistent with compensation for default risk and can be explained by …

We study how the credit desk profitability of U.S. dealers that trade corporate bonds and single-name credit default … the dealers involved in each transaction and to observe their daily profit and loss (P&L). We find that profitability is … important for bond liquidity and for liquidity correlation. Through the lens of a stylized model, we highlight that the impact …