We examine determinants of the strength of bond covenants in protecting bondholders ’ interests using a unique dataset constructed by Moody’s, which allows us to measure the restrictiveness of bond covenant packages beyond the covenant inclusion measures used in the prior literature. We find

on the number of restrictive covenants in the bond contract. This effect is robust to different measures of blockholding and alternative regression models, and cannot be explained away by the endogeneity of institutional blockholding. We identify a stronger effect of blockholding for active blockholders

Abstract not found

Previous studies examining the impact of event risk bond covenants on shareholder wealth have conflicting results. Bae, Klein and Padmaraj (1994) find a significant positive stock price reaction related to the issuance of event risk protected bonds. While Cook and Easterwood (1994) find an opposite

be cleared with the author or authors. Recent IFDPs are available on the Web at www.federalreserve.gov/pubs/ifdp/.Real-Time Price Discovery in Global Stock, Bond and Foreign Exchange Markets

We characterize the response of U.S., German and British stock, bond and foreign exchange markets to real-time U.S. macroeconomic news. Our analysis is based on a unique data set of highfrequency futures returns for each of the markets. We find that news surprises produce conditional mean jumps

Abstract This paper examines the relationship between covenants, short-term and long-term debt with companies which face growth opportunities. Using a sample of 159 Brazilian corporate bonds, we found evidence that: 1) Covenants and short-term debt are substitute tools to minimize agency conflict

This paper models the price of finite maturity corporate coupon bonds with a rating-based covenant. Bhanot (2003) already addressed this issue, but the corresponding model embeds two features that in some way could be considered as significant limitations. In the first place, it does not take

order). This financial support enables us to issue CARF Working Papers. CARF Working Papers can be downloaded without charge from:

Abstract This paper analyzes the capital structure of a firm in an infinite time horizon following [2] under the more general hypothesis that the firm's assets value process belongs to a fairly large class of stochastic volatility models. We apply singular perturbation theory as in