Centralized trading of corporate bonds

Arbeitspapier

In the post-crisis period, increased regulation of financial intermediaries led to a significant decline in corporate bond market liquidity. In order to stabilize these markets, policy makers recently proposed that the trading of corporate bonds should be more centralized. In this paper, we show that a centralization of corporate bond markets always leads to an inferior outcome when compared with the initial over-the-counter structure. The regulator may achieve a superior allocation only if it is feasible for him to also affect market liquidity, by either increasing or decreasing it.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 211

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Market Design ; Incomplete Markets ; Externalities ; Price Level; Inflation; Deflation ; Financial Markets and the Macroeconomy ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General ; Portfolio Choice; Investment Decisions ; Asset Pricing; Trading Volume; Bond Interest Rates ; Financial Institutions and Services: Government Policy and Regulation
• Thema: monetary theory ; over-the-counter markets ; financial regulation ; corporate bonds ; liquidity

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Huber, Samuel ; Kim, Jaehong
• Ereignis: Veröffentlichung
• (wer): University of Zurich, Department of Economics
• (wo): Zurich
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/126606
• Letzte Aktualisierung: 10.03.2025, 11:46 MEZ