Ellul, Andrew; Jotikasthira, Chotibhak; Lundblad, … - In: Journal of Financial Economics 101 (2011) 3, pp. 596-620
This paper investigates fire sales of downgraded corporate bonds induced by regulatory constraints imposed on insurance companies. As insurance companies hold over one-third of investment-grade corporate bonds, the collective need to divest downgraded issues may be limited by a scarcity of...