The execution quality of corporate bonds

O’ Hara, M; Wang, Y; (Alex) Zhou, X

The execution quality of corporate bonds

O’ Hara, M Wang, Y (Alex) Zhou, X

Permalink

Publication Type:: Journal Article
Citation:: Journal of Financial Economics, 2018, 130 (2), pp. 308 - 326
Issue Date:: 2018-11-01

Closed Access

	Filename	Description	Size
	1-s2.0-S0304405X18301582-main.pdf	Published Version	692.75 kB	Adobe PDF	View/Open

Copyright Clearance Process

Recently Added
In Progress
Closed Access

This item is closed access and not available.

Full metadata record

Field	Value	Language
dc.contributor.author	O’ Hara, M	en_US
dc.contributor.author	Wang, Y	en_US
dc.contributor.author	(Alex) Zhou, X	en_US
dc.date.issued	2018-11-01	en_US
dc.identifier.citation	Journal of Financial Economics, 2018, 130 (2), pp. 308 - 326	en_US
dc.identifier.issn	0304-405X	en_US
dc.identifier.uri	http://hdl.handle.net/10453/130470
dc.description.abstract	© 2018 Elsevier B.V. This paper investigates execution quality issues in corporate bond trading. Using an extensive sample of bond trades by insurance companies, we find that an insurance company entering a trade of similar size and on the same side for the same bond on the same day with the same dealer will receive a better price if the insurance company is a more active trader than if it is a less active trader. Trading with the dominant dealer or underwriter worsens these differentials, while greater transparency and smaller trading networks lessens these effects. Our results provide strong evidence that execution quality differences remain pervasive in corporate bond trading.	en_US
dc.relation.ispartof	Journal of Financial Economics	en_US
dc.relation.isbasedon	10.1016/j.jfineco.2018.06.009	en_US
dc.subject.classification	Finance	en_US
dc.title	The execution quality of corporate bonds	en_US
dc.type	Journal Article
utslib.citation.volume	2	en_US
utslib.citation.volume	130	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	1606 Political Science	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
utslib.copyright.status	closed_access
pubs.issue	2	en_US
pubs.publication-status	Published	en_US
pubs.volume	130	en_US

Abstract:

© 2018 Elsevier B.V. This paper investigates execution quality issues in corporate bond trading. Using an extensive sample of bond trades by insurance companies, we find that an insurance company entering a trade of similar size and on the same side for the same bond on the same day with the same dealer will receive a better price if the insurance company is a more active trader than if it is a less active trader. Trading with the dominant dealer or underwriter worsens these differentials, while greater transparency and smaller trading networks lessens these effects. Our results provide strong evidence that execution quality differences remain pervasive in corporate bond trading.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/130470