To investigate the liquidity of large issues, this study tests for yield differences between
corporate bonds and medium‐term notes (MTNs). In the sample, MTNs have an average issue …

According to agency theories, the prevalence of callable bonds arises from asymmetric
information, a risk incentive or asset substitution problem, or an underinvestment problem. These …

The credit risk of preferred stock is not simply the probability of default. Because preferred
stock is legally an equity security, issuers may omit dividends without triggering default or …

Investors have become eager to buy putable bonds; 1996 marks the first year that putable
bond volume outstripped callable bond volume. While the increased pace of putable bond …

Excerpted from the Federal Reserve Bulletin, August 1990, pp. 593–603. Leland E. Crabbe,
Margaret H. Pickering, and Stephen D. Prouse are with the Division of Research and …

… These yield spreads are estimated using the model presented in Leland E. Crabbe and
Christopher M. Turner, "A Dynamic Linear Model of the Determinants of Yield Spreads on Fixed…

… Several of the chapters in this book draw from research Leland Crabbe conducted while at
the Federal Reserve Board in Washington DC in the early 1990s, next at Merrill Lynch in the …

This chapter analyzes liquidity and trading costs from several perspectives. It begins with a
description of the secondary market, focusing on the role of dealers in determining the bid‐…

85 changing the risk profiles of their portfolios. Thus, from the investor’s point of view, the
difference between a structured note and a traditional note has been compared to the …

We welcome this opportunity to respond to the comments of Aoki (1991) regarding the time
series model reduction method presented in Crabbe and Young (1989). His criticisms of the …