The Value of Corporate Bond Listing

Brittany M. Cole and Nell S. Gullett Gullett

MPRA Paper from University Library of Munich, Germany

Abstract: We study the impact of bond exchange listing in U.S. publicly traded corporate bond markets. We find that listed corporate bonds have lower estimated bid-ask spreads than unlisted corporate bonds. Specifically, we show that listed bonds have estimated spreads of $0.14 lower than unlisted bond spreads. We find that execution venue matters for listed bonds, and that listed bond executions on the NYSE have higher trading costs than listed bond executions off-NYSE. We show that listed bonds are more volatile than unlisted bonds. Last, we study bond trading around earnings announcements and find a slight increase (decrease) in overall (institutional) volume on earnings announcement days compared to non-announcement days.

Keywords: corporate bond; bond market; exchange listing; bid-ask spread; earnings announcement (search for similar items in EconPapers)
JEL-codes: A1 G0 (search for similar items in EconPapers)
Date: 2024-03-06, Revised 2024-03-27
New Economics Papers: this item is included in nep-cfn and nep-fmk
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Published in International Journal of Business and Social Science Research 3.5(2024): pp. 1-14

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:120601

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