A reconsideration of the risk sensitivity of U.S. banking organization subordinated debt spreads: a sample selection approach

Daniel M. Covitz, Diana Hancock and Myron L. Kwast
Additional contact information
Daniel M. Covitz: https://www.federalreserve.gov/econres/daniel-m-covitz.htm

Economic Policy Review, 2004, issue Sep, No v.10 no.2, 73-92

Abstract: The authors estimate a sample selection model over three distinct regulatory \\"regimes\\" when the treatment of bank bondholders (in the event of bank failures) differed substantially. They then estimate their selection model to test the strength of bond market discipline over these three regulatory regimes, finding that bank bond spreads are positively associated with bank risk measures during all three regimes, even during the too-big-to-fail period.

Keywords: Banks and banking - Ratio analysis; Deposit insurance; Debt management; Bank assets (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (49)

Downloads: (external link)
https://www.newyorkfed.org/medialibrary/media/research/epr/04v10n2/0409Covi.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fednep:y:2004:i:sep:p:73-92:n:v.10no.2

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Economic Policy Review from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by Gabriella Bucciarelli ().