Publication:
Not all General Obligation Bonds Are Created Equal

Thumbnail Image
Files
Not all General Obligation Bonds Are Created Equal.pdf (110.49 KB)
Date
2021-07-04
Authors
Advisor
Court
Journal Title
Journal ISSN
Volume Title
Publisher
Defense Date
Metrics
Citation
Research Projects
Organizational Units
Journal Issue
URI
https://hdl.handle.net/20.500.14417/3761
DOI
http://dx.doi.org/10.2139/ssrn.3859633
Abstract
We document a comprehensive new classification of the legal structures backing municipal bonds and the effects that different legal features have on bond yields. It is a well-documented fact that investors rely on credit ratings to determine the credit risk of municipal bonds. However, rating agencies do not fully factor in the legal structures backing the bonds because measuring and testing the effects of said legal structures is inherently onerous. Since the price of risk is unusually high in this market, these flaws have important effects on yields.
Unesco subjects
License
Attribution-NonCommercial-NoDerivatives 4.0 International
School
IE Business School
Center
Keywords
Citation
Cestau, Dario, Not all General Obligation Bonds Are Created Equal (June 3, 2021). http://dx.doi.org/10.2139/ssrn.3859633.
Collections
Working Papers