Not all General Obligation Bonds Are Created Equal

Cestau, Dario

Publication:
Not all General Obligation Bonds Are Created Equal

dc.contributor.author	Cestau, Dario
dc.contributor.ror	https://ror.org/02jjdwm75
dc.date.accessioned	2025-04-25T08:08:47Z
dc.date.available	2025-04-25T08:08:47Z
dc.date.issued	2021-07-04
dc.description.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.
dc.description.peerreviewed	yes
dc.description.status	Published
dc.format	application/pdf
dc.identifier.citation	Cestau, Dario, Not all General Obligation Bonds Are Created Equal (June 3, 2021). http://dx.doi.org/10.2139/ssrn.3859633.
dc.identifier.doi	http://dx.doi.org/10.2139/ssrn.3859633
dc.identifier.uri	https://hdl.handle.net/20.500.14417/3761
dc.language.iso	en
dc.relation.department	Finance
dc.relation.entity	IE University
dc.relation.school	IE Business School
dc.rights	Attribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRights	info:eu-repo/semantics/openAccess
dc.rights.uri	https://creativecommons.org/licenses/by-nc-nd/4.0/deed.en
dc.subject.keyword	Municipal bonds
dc.subject.keyword	Credit ratings
dc.subject.keyword	Rating agencies
dc.subject.keyword	Bond yields
dc.subject.keyword	General obligations
dc.subject.keyword	Legal security
dc.subject.keyword	State law
dc.title	Not all General Obligation Bonds Are Created Equal
dc.type	info:eu-repo/semantics/workingPaper
dc.version.type	info:eu-repo/semantics/publishedVersion
dspace.entity.type	Publication
relation.isAuthorOfPublication	9305e847-1b1f-459c-a881-7cfaca868a1f
relation.isAuthorOfPublication.latestForDiscovery	9305e847-1b1f-459c-a881-7cfaca868a1f