Financial Innovation and Financial Intermediation: Evidence from Credit Default Swaps

被引：4

作者：

Butler, Alexander W. ^{[1
]}

Gao, Xiang ^{[2
]}

Uzmanoglu, Cihan ^{[3
]}

机构：

[1] Rice Univ, Jones Grad Sch Business, Houston, TX 77005 USA

[2] Univ North Dakota, Grand Forks, ND 58203 USA

[3] SUNY Binghamton, Binghamton, NY 13902 USA

来源：

MANAGEMENT SCIENCE | 2021年 / 67卷 / 05期

关键词：

credit default swaps; underwriting fees; bond ownership; hedging credit risk; STOCK-MARKET LIQUIDITY; CROSS-SECTION; INVESTMENT; IMPACT; PERFORMANCE; RETURNS; OPTIONS; SALES; ASK;

D O I：

10.1287/mnsc.2019.3560

中图分类号：

C93 [管理学];

学科分类号：

12 ; 1201 ; 1202 ; 120202 ;

摘要：

We study the influence of credit default swaps (CDS) trading on the costs of bond intermediation. After CDS initiation, CDS firms pay 12% to 28% (8 to 20 basis points) lower underwriting fees than similar non-CDS firms do. Underwriting fees decline more for riskier issuers and illiquid bonds for which the ability to hedge with CDS is more valuable. In bond offerings, participation by investors facing risk-based regulatory requirements increases after CDS initiation. Our evidence suggests that CDS-driven innovations in risk sharing contribute to the transactional efficiency of the market by reducing the financial intermediation costs of placing bonds.

引用

页码：3150 / 3173

页数：24

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