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granular data on the bond transactions of U.S. insurance companies. Liquidity inflows from insurance premiums combined with …
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Insurance companies often follow highly correlated investment strategies. As major investors in corporate bonds, their … following a rating downgrade. Reflective of fire-sale risk, clustering of insurance companies in a bond has significant … bond yield spreads is more evident for bonds held to a greater extent by capital-constrained insurance companies, those …
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We compile a rich dataset that links institutional investors' position level holdings with corporate bond characteristics and estimate demand elasticities with respect to critical sources of risk. Persistence in institutions' holdings provide us with an instrument to isolate exogenous movements...
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