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来源类型 | Discussion paper |
规范类型 | 论文 |
来源ID | DP16239 |
DP16239 Credit Risk and the Life Cycle of Callable Bonds: Implications for Corporate Financing and Investing | |
Bo Becker; Murillo Campello; Dong Yan; Viktor Thell | |
发表日期 | 2021-06-09 |
出版年 | 2021 |
语种 | 英语 |
摘要 | Call provisions allow bond issuers to redeem their bonds early. While commonly observed, existing research offers limited insight into the purpose of this contract feature. We show that bond callability is designed to mitigate agency problems, with call features and execution being determined by credit spreads and issuer quality. Callable bonds have significantly higher yields and lower secondary market prices than non-callable bonds ("cost of callability"). Issuers call bonds when their credit quality improves. We provide novel evidence that callability reduces debt overhang affecting decisions ranging from capital investment to takeovers. Our results help explain the prevalence of call features and suggest that callability improves economic efficiency. |
主题 | Financial Economics |
关键词 | Callable bonds Credit risk Debt overhang Investment decisions |
URL | https://cepr.org/publications/dp16239 |
来源智库 | Centre for Economic Policy Research (United Kingdom) |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/545207 |
推荐引用方式 GB/T 7714 | Bo Becker,Murillo Campello,Dong Yan,et al. DP16239 Credit Risk and the Life Cycle of Callable Bonds: Implications for Corporate Financing and Investing. 2021. |
条目包含的文件 | 条目无相关文件。 |
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