This paper studies the link between secondary market liquidity for a corporate bond and the bond's yield spread at issuance. Using ex-ante measures of expected liquidity at the time of issuance, based on the characteristics of the underwriting syndicate, we find an economically large impact of...

Over 85% U.S. firms set their pension discount rates higher than benchmark rates, particularly when interest rates fall. This paper offers explanations to this phenomenon --- mandatory contributions to underfunded pensions constrain corporate investments, thus a relaxation of such constraint...

This paper deals with ‘investment timing’, or how to make decisions on long-term investments to mitigate catastrophic risk where the risk is driven by trends and seasonality, and interest rates vary stochastically over time. Our model combines real options theory, extreme value theory and...