Bertoni, Fabio; Lugo, Stefano - In: Journal of Corporate Finance 27 (2014) C, pp. 21-35
We study how sovereign wealth fund (SWF) investments affect the credit risk of target companies as measured by the change in their credit default swap (CDS) spreads around the investment announcement. We find that the CDS spread of target companies decreases, on average, following an SWF...