Municipal Bond Markets

Dario Cestau, Burton Hollifield, Dan Li and Norman Schürhoff
Additional contact information
Dario Cestau: IE Business School, IE University
Burton Hollifield: Carnegie Mellon University - David A. Tepper School of Business
Dan Li: Federal Reserve Board
Norman Schürhoff: University of Lausanne; Swiss Finance Institute; Centre for Economic Policy Research (CEPR)
Authors registered in the RePEc Author Service: Norman Schuerhoff

No 18-69, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: The effective functioning of the municipal bond market is crucial for the provision of public services, as it is the largest capital market for state and municipal issuers. Prior research has documented tax, credit, liquidity, and segmentation effects in municipal bonds. Recent regulatory initiatives to improve transparency have made granular trade data available to researchers, rendering it a natural laboratory to study financial intermediation, asset pricing in decentralized markets, and local public fi nance. Trade-by-trade studies have found large trading costs, contemporaneous price dispersion and other deviations from the law-of-one-price. More research is required to understand optimal market design and the impact of post-crisis regulation, sustainability, and financial technology.

Keywords: municipal bonds; muni-bond puzzle; over-the-counter markets; trading cost; centrality premium; electroni cation; green bonds (search for similar items in EconPapers)
JEL-codes: G12 G14 G18 G24 G28 H21 H6 H7 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2018-10
References: Add references at CitEc
Citations: View citations in EconPapers (2)

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https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3275950 (application/pdf)

Related works:
Journal Article: Municipal Bond Markets (2019)
Working Paper: Municipal Bond Markets (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp1869

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