We examine the marginal impact of Fitch ratings on the at-issuance yields of industrial and utility bonds rated by Moody's and S&P. We find that Fitch ratings reduce the yield premiums on information opaque bonds by about 30% or 15 basis points. The finding is robust even when a Fitch rating...

This paper examines the relationship between split bond ratings and bond yields at the notch level for newly issued corporate bonds. We find that split rated bonds average a 7-basis-point yield premium over non-split rated bonds of similar credit risk. The yield premium increases from 5 basis...

Previous research has shown that fund performance is reduced by higher expense ratios but improved by more active management. Using data for equity mutual funds from 1991-2012, we show that prior studies has overlooked the fact that a high degree of active management magnifies the extremes of...