Sequential Search for Corporate Bonds

Mahyar Kargar, Benjamin Lester, Sébastien Plante () and Pierre-Olivier Weill
Additional contact information
Sébastien Plante: https://business.wisc.edu/directory/profile/sebastien-plante/

No 25-08, Working Papers from Federal Reserve Bank of Philadelphia

Abstract: Customers in over-the-counter (OTC) markets must find a counterparty to trade. Little is known about this process, however, because existing data consist of transaction records, which only reveal the outcome of a search. Using data from a trading platform for corporate bonds, we unpack the search process. We analyze how long it takes customers to trade and how dealers’ offers evolve across repeated inquiries. We estimate that it takes 2-3 days to complete a transaction after an unsuccessful attempt, with substantial variation across trade and customer characteristics. Our analysis offers insights into the sources of trading delays in OTC markets.

Keywords: Over-the-counter markets; intermediation; corporate bonds; time-to-trade (search for similar items in EconPapers)
JEL-codes: G11 G12 G14 G21 (search for similar items in EconPapers)
Pages: 71
Date: 2025-03-05
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.philadelphiafed.org/-/media/FRBP/Asset ... ers/2025/wp25-08.pdf (application/pdf)

Related works:
Working Paper: Sequential Search for Corporate Bonds (2023)
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:fedpwp:99648

Ordering information: This working paper can be ordered from

DOI: 10.21799/frbp.wp.2025.08

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Philadelphia Contact information at EDIRC.
Bibliographic data for series maintained by Beth Paul ().