Huang, Jing-Zhi
[Verfasser:in]
;
Li, Xin
[Sonstige Person, Familie und Körperschaft];
Saglam, Mehmet
[Sonstige Person, Familie und Körperschaft];
Yu, Tong
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 12, 2019 erstellt
Beschreibung:
Insurance firms are a key player in the corporate bond market. In this study, we consider the role of life insurers as "rainy day" liquidity providers who improve liquidity in stressful conditions due to the nature of long-term buy-and-hold investments. To this end, we present evidence that insurers' corporate bond purchases improve bond liquidity during the financial crisis and among downgraded bonds facing selling pressure. Life insurers are net purchasers of downgraded bonds within investment grades. Downgraded bonds with greater purchases from life insurers are significantly better priced