Found 23 article(s) for author 'Robin Greenwood'

Issuer Quality and Corporate Bond Returns

Issuer Quality and Corporate Bond Returns. Robin Greenwood, Samuel G. Hanson, February 2013, Paper. “We show that the credit quality of corporate debt issuers deteriorates during credit booms, and that this deterioration forecasts low excess returns to corporate bondholders. The key insight is that changes in the pricing of credit risk disproportionately affect the financing costs faced by low quality firms, so the debt issuance of low quality firms is particularly useful for forecasting bond returns. We show that a significant decline in issuer quality is a more reliable signal of credit market overheating than rapid…” Link verified August 21, 2014

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The Growth of Finance

The Growth of Finance. Robin Greenwood, 2013, Paper. “During the last 30 years, the financial services sector has grown enormously. During the last 30 years, the financial services sector has grown enormously. This growth is apparent whether one measures the financial sector by its This growth is apparent whether one measures the financial sector by its share of GDP, by the quantity of financial assets, by employment, or by share of GDP, by the quantity of financial assets, by employment, or by average wages…” Link verified March 28, 2014

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A Gap-Filling Theory of Corporate Debt Maturity Choice

A Gap-Filling Theory of Corporate Debt Maturity Choice. Jeremy Stein, Robin Greenwood, Samuel Hanson, June 2008, Paper. “We argue that time-series variation in the maturity of aggregate corporate debt issues arises because firms behave as macro liquidity providers, absorbing the large supply shocks associated with changes in the maturity structure of government debt. We document that when the government funds itself with relatively more short-term debt, firms fill the resulting gap by issuing more long-term debt, and vice-versa. This type of liquidity provision is undertaken more aggressively: i) in periods when the ratio…” Link

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