As of June 2012 there was $8.5 trillion of US corporate debt outstanding. But, relative to equity markets, the microstructure of the US corporate bond market has been under-researched. Dealers in the bond market have reduced their inventories substantially since October 2007. This coincided with the start of large write-downs on the balance sheets of several banks (Citi, Merrill Lynch, UBS), whose dealer businesses had substantial share in liquidity provision for the trading of US corporate bonds…
Pricing and Liquidity in the U.S. Corporate Bond Market
January 16, 2013