For a large sample of U.S. firms from 1994 to 2009, we empirically examine the impact of corporate hedging on the cost of public debt. We find strong evidence that hedging is associated with a lower cost of debt. The negative effect of hedging on the cost of debt is consistent across industries,...

We examine corporate call policy for 1,642 nonconvertible bonds that were called during the period 1975-94. The vast majority of firms delay calls and call when the bond price exceeds the call price. We find that larger, less liquidity constrained firms with a larger opportunity cost of delaying...

As a result of the economic expansion during the late 1990s, the size of the federal debt has declined significantly. Contemporaneous with this reduction in Treasury debt, growth in federal agency debt has been remarkable. Understanding the impact of the decline in federal debt outstanding on...