Search Results
Showing results 1 to 1 of approximately 1.
(refine search)
Discussion Paper
Evidence from the Bond Market on Banks’ “Too-Big-to-Fail” Subsidy
Yesterday’s post presented evidence on a possible upside of very large banks, namely, lower costs. In today’s post, we focus on a possible downside, that is, whether investors in the primary bond market “discount” risk when they invest in bonds of the too-big-to-fail banks.