The Variety of Maturities Offered by Firms and Institutional Investment in Corporate Bonds

Nishant Dass; Massimo Massa

doi:10.1093/rfs/hhu028

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The Variety of Maturities Offered by Firms and Institutional Investment in Corporate Bonds

Nishant Dass¹; Massimo Massa²

¹ Georgia Institute of Technology · ² INSEAD

Review of Financial Studies 2014

We study how a firm's decision to offer bonds of various maturities affects the portfolio allocations of institutional investors. We argue that because of lower information-collection costs, institutional investors tilt their portfolios towards firms that offer bonds of various maturities. We show that this translates into lower bond yields, both in the primary and in the secondary bond markets.

DOI: 10.1093/rfs/hhu028
Volume: 27 (7)
Pages: 2219-2266
Language: en
Export: BibTeX
Sources: openalex crossref