Working Paper: The Value of Bond Underwriter Relationships

Working Paper - February 2021 - No. 170

Authors von Rüden, Stine Louise (Danmarks Nationalbank); Nielsen, Mads Stenbo (Copenhagen Business School); Dick-Nielsen, Jens (Copenhagen Business School)
Subject Credit risk; Financial stability; Refinancing risk
Type Working paper
Year 2021
Published 12 February 2021
Abstract icon This paper analyzes the role of underwriters for issuers of corporate bonds. The results suggest that – in terms of issuance costs – bond issuers benefit from using underwriters they have used before, but, at the same time, this exposes the issuer to a credit risk spillover from the underwriter.