Publications

December 2020
Article

Sovereign Debt Portfolios, Bond Risks, and the Credibility of Monetary Policy

By: Wenxin Du, Carolin Pflueger and Jesse Schreger

We document that governments whose local currency debt provides them with greater hedging benefits actually borrow more in foreign currency. We introduce two features into a government's debt portfolio choice problem to explain this finding: risk-averse lenders and... View Details

Keywords: Investment Portfolio; Currency; Policy; Risk and Uncertainty

Research Summary

Characteristics of Corporate Bond Transactions: Evolution Through Time and Across Liquidity (with George Chacko, Marti Subrahmanyam, and Jeffrey Sutthoff)

The US corporate bond market is one of the most opaque, illiquid markets for corporate securities. Large, comprehensive bond databases are scarce, making it difficult to formally study and understand bond trading behavior. In this paper, we use a unique database of... View Details

March 2008
Article

Can Civil Law Countries Get Good Institutions? Lessons from the History of Creditor Rights and Bond Markets in Brazil

By: Aldo Musacchio

Does a legal tradition adopted in the distant past constrain a country's ability to provide the protection that investors need for financial markets to develop? This paper contributes to the literature that studies the connection between law and finance by looking at... View Details

Keywords: Bonds; Financial Markets; Investment; Code Law; Contracts; Law Enforcement; Size; Brazil

March 2018 (Revised April 2018)
Case

Morgan Stanley: Building Long-Term Sustainability

By: Vikram S. Gandhi and Lynn Schenk

This case focuses on the 10-year journey of one of the world's largest global financial institutions developing a sustainability strategy and integrating it across all of its business units. The case provides a deep dive into the challenges and successes of trying to... View Details

Keywords: Finance; Sustainability; Green Bonds; ESG; Environmental Sustainability; Strategy; Business Units; Integration; Financial Institutions

Educators

2009
Working Paper

Inflation Bets or Deflation Hedges? The Changing Risks of Nominal Bonds

By: John Y. Campbell, Adi Sunderam and Luis M. Viceira

June 2008
Supplement

Walt Disney Company's Sleeping Beauty Bonds - Duration Analysis - courseware

By: Carliss Y. Baldwin

Keywords: Bonds; Theory; Education; Information; Entertainment and Recreation Industry

May 2024 (Revised July 2024)
Case

The Silicon Valley Bank Crisis: MAPFRE USA's Investment in SVB Financial Group Bonds

By: Ishita Sen, Emil Nuwan Siriwardane, David S. Scharfstein and Luis M. Viceira

Educators

13 Oct 1994
Lecture

Use of Convertible and Warrant Bonds by Japanese Firms: Risk Shifting or Delayed Equity?

By: W. Carl Kester

Keywords: Bonds; Risk and Uncertainty; Equity; Japan

June 2008
Supplement

Walt Disney Company's Sleeping Beauty Bonds - Duration Analysis - courseware for instructors

By: Carliss Y. Baldwin

Keywords: Bonds; Theory; Education; Information; Entertainment and Recreation Industry

1991
Chapter

Reactions to Political Advertising Depend on the Nature of the Voter-Candidate Bond

By: J. A. Deighton, L. F. Alwitt and J. Grimm

Keywords: Advertising Campaigns; Political Elections; Relationships; Attitudes; Advertising Industry

September 2023
Supplement

Arcos Dorados: Decarbonizing McDonald’s in Latin America – Sustainability-linked Bonds and Executive Compensation

By: George Serafeim and Michael W. Toffel

April 5, 2011
Article

A Bond Backfire After Racing to Buy Long-term Treasuries and Sell Tax-exempt Funds

By: Robert C. Pozen and Theresa Hamacher

Keywords: Revenue; Taxation

August 2017
Comment

Comment on: "Dealer Balance Sheets and Bond Liquidity Provision" by Adrian, Boyarchenko and Shachar

By: Marco Di Maggio

1991
Chapter

Inter-organizational Bonds and Intra-organizational Behavior: How Alliances and Partnerships Change the Organizations Forming Them

By: R. M. Kanter and P. S. Myers

Keywords: Alliances; Partners and Partnerships; Organizational Change and Adaptation

2013
Working Paper

Return Predictability in the Treasury Market: Real Rates, Inflation, and Liquidity

By: Carolin E. Pflueger and Luis M. Viceira

Estimating the liquidity differential between inflation-indexed and nominal bond yields, we separately test for time-varying real rate risk premia, inflation risk premia, and liquidity premia in U.S. and U.K. bond markets. We find strong, model independent evidence... View Details

Keywords: Expectations Hypothesis; Term Structure; Real Interest Rate Risk; Inflation Risk; Inflation-Indexed Bonds; Financial Crisis; Inflation and Deflation; Financial Liquidity; Bonds; Investment Return; Risk and Uncertainty; United Kingdom; United States

SSRN

June 2019
Article

Debt Redemption and Reserve Accumulation

By: Laura Alfaro and Fabio Kanczuk

In the past decade, foreign participation in local-currency bond markets in emerging countries increased dramatically. We revisit sovereign debt sustainability under the assumptions that countries can accumulate reserves and borrow internationally using their own... View Details

Keywords: Sovereign Debt; Local-currency Bonds; Foreign Reserves; Sovereign Finance; Borrowing and Debt; Bonds; Financial Markets; Developing Countries and Economies

2000
Other Unpublished Work

Private Versus Public Debt: Evidence from Firms that Replace Bank Loans with Junk Bonds

By: S. C. Gilson and J. Warner

Keywords: Borrowing and Debt; Financing and Loans; Bonds; Banking Industry

2006
Working Paper

Can Civil Law Countries Get Good Institutions? Creditor Rights and Bond Markets in Brazil, 1850-2003

By: Aldo Musacchio