Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 21, 2023 erstellt
Beschreibung:
Corporate bond ETFs provide stable funding to US companies, with pricing and real effects. ETF ownership reduces the yield spreads for bonds directly owned and for the other bonds of the same issuer. This lower cost of debt enables financially constrained firms to invest in risky projects. Exogenous ETF rule changes establish a causal link between bond ETF ownership and R&D spending, with the effect being largest for speculative-grade issuers. A theoretical model incorporating institutional features of bond ETFs shows that sufficiently productive firms will optimally issue extra debt to ensure their bonds are ETF-eligible