@article {Chakravarty39, author = {Sugato Chakravarty and Asani Sarkar}, title = {Trading Costs in Three U.S. Bond Markets}, volume = {13}, number = {1}, pages = {39--48}, year = {2003}, doi = {10.3905/jfi.2003.319345}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Newly available transaction data are available for comparison of trading costs in the U.S. Treasury bond market with U.S. corporate and municipal bond markets. The mean bid-ask spread per $100 par value is estimated at 23 cents for municipal bonds, 21 cents for corporate bonds, and 8 cents for Treasury bonds. Maturity, trade size, and credit ratings are key determinants of the bid-ask spread. After controlling for credit risk, the bid-ask spread is not statistically different between corporate and Treasury markets but it is higher for municipal bonds relative to Treasuries.}, issn = {1059-8596}, URL = {https://jfi.pm-research.com/content/13/1/39}, eprint = {https://jfi.pm-research.com/content/13/1/39.full.pdf}, journal = {The Journal of Fixed Income} }