The market for borrowing corporate bonds
By: Paul Asquith ... [et al..].
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 16282; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16282.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper describes the market for borrowing corporate bonds using a comprehensive dataset from a major lender.  The cost of borrowing corporate bonds is comparable to the cost of borrowing stock, between 10 and 20 basis points per year.  Factors that increase borrowing costs are loan size, percentage of inventory lent, rating, and borrower identity.  Trading strategies based on cost or amount of borrowing do not yield excess returns.  Bonds with corresponding CDS contracts are more actively lent than those without.  Finally, the 2007 Credit Crunch did not affect average borrowing cost or loan volume, but increased borrowing cost variance"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 9/28/2010.

Includes bibliographical references.

Also available in print.

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Mode of access: World Wide Web.