Showing 1 - 2 of 2
This paper provides an empirical test of the demand side of Thakor's (1982) theory of bond insurance signaling, namely that the insurance premium charged by municipal bond insurers provides a signal to the market that reduces asymmetric information in the market. We test the theory for a sample...
Persistent link: https://www.econbiz.de/10013115055
This study examines the relationship between underwriter placement risk and market transaction prices using a sample of state general obligation bonds. We proxy underwriter placement risk using three variables: “when-issued” trades, underwriter syndicate size, and bond sale method....
Persistent link: https://www.econbiz.de/10012929506