Eurobond underwriter spreads

Neil Esho (), Michael G. Kollo and Ian G. Sharpe

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We examine the determinants of underwriter spreads on straight/fixed rate Eurobonds issued by U.S. firms between 1990 and 1998. We find that underwriter spreads are influenced by: (i) the governing law as it influences the timely and orderly renegotiation of contract terms, with bonds governed by English law having significantly lower spreads; (ii) the distribution mechanism, with spreads higher on public issues than private placements; (iii) underwriter reputation, with more reputable underwriters charging higher fees; and (iv) the choice of currency, with spreads higher in the less frequently utilized currencies and/or in currencies where underwriting activities are more concentrated.

Keywords: Underwriter spread; Eurobonds; Governing law (search for similar items in EconPapers)
JEL-codes: G15 G24 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2004-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://eprints.lse.ac.uk/24744/ Open access version. (application/pdf)

Related works:
Journal Article: Eurobond underwriter spreads (2006)
Working Paper: Eurobond Underwriter Spreads (2004)
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:ehl:lserod:24744

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().