Municipal Bond Markets

Details

Serval ID
serval:BIB_0A8E95C08A33
Type
Article: article from journal or magazin.
Collection
Publications
Title
Municipal Bond Markets
Journal
Annual Review of Financial Economics
Author(s)
Schuerhoff N., Li D., Cestau D., Hollifield B.
Publication state
Published
Issued date
01/12/2019
Volume
11
Pages
65-84
Language
english
Abstract
The effective functioning of the municipal bond market is crucial for the provision of public services, as it is the largest capital market for state and municipal issuers. Prior research has documented tax, credit, liquidity, and segmentation effects in municipal bonds. Recent regulatory initiatives to improve transparency have made granular trade data available to researchers, rendering the municipal bond market a natural laboratory for the study of financial intermediation, asset pricing in decentralized markets, and local public finance. Trade-by-trade studies have found large trading costs, contemporaneous price dispersion, and other deviations from the law of one price. More research is required to understand optimal market design and the impact of post-crisis regulation, sustainability, and financial technology.
Keywords
municipal bonds, muni-bond puzzle, over-the-counter markets, trading cost, centrality premium, electronification, green bonds
Open Access
Yes
Create date
20/02/2019 12:12
Last modification date
30/05/2020 6:18
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