Using data on indicative quotes dealers provide to clients, we establish empirical relationships regarding quote competition in the corporate bond market. Market-wide higher quoting activity is associated with greater trading volume and lower trading costs. At the dealer level, quoting dealers...

We examine two decades of block trading in corporate bonds to test theoretical predictions on receiving investors to whom the dealer distributes the block. Receiving investors lose on average from participating as a counterparty in the block trade. Nevertheless, participation is often optimal,...