We model an IPO company's optimal response to the presence of sentiment investors and short sale constraints. Given regulatory constraints on price discrimination, the optimal mechanism involves the issuer allocating stock to 'regular' institutional investors for subsequent resale to sentiment...

Stapled Finance is a loan commitment arranged by a seller in an Mamp;A setting. The key feature is that whoever wins the bidding contest has the option (not the obligation) to accept the loan commitment. Stapled finance has become common: in 2004, it was offered in 39% of US deals that involved...

Stapled Finance is a loan commitment arranged by a seller in an Mamp;A setting. The key feature is that whoever wins the bidding contest has the option (not the obligation) to accept the loan commitment. Stapled finance has become common: in 2004, it was offered in 39% of US deals that involved...