• Media type: E-Book
  • Title: Private Information Disclosure in the Secondary Loan Market and its Impact on Equity Market Trading Costs
  • Contributor: Saunders, Anthony [VerfasserIn]; Shao, Pei [VerfasserIn]; Xiao, Yuchao [VerfasserIn]
  • imprint: [S.l.]: SSRN, 2022
  • Extent: 1 Online-Ressource (70 p)
  • Language: English
  • DOI: 10.2139/ssrn.4310591
  • Identifier:
  • Keywords: Secondary loan market ; Stock bid-ask spread ; Institutional investors ; Information asymmetry ; Insider trading
  • Origination:
  • Footnote:
  • Description: When a firm’s loans are first traded in the secondary market, private information about the firm is disclosed to a select group of large investors, so called “Qualified Institutional Buyers” (QIBs). We document a significant information effect that benefits these buyers in the firm’s market for equity, in particular, a significant impact on equity market investors and the firm’s stock bid-ask spreads, which benefits informed QIBs relative to retail investors. This informational benefit gives rise to important regulatory issues relating to disclosure and SEC regulation
  • Access State: Open Access