Objective Unlike equities, corporate debt claims are currently mostly traded in over-the-counter (OTC) markets. Since the OTC nature of the market decreases price transparency, increases transaction costs, and increases the time it takes to find a matching counterparty for a trade, there is a fundamental economic question as to why an apparently imperfect matching technology (OTC trade) can arise in equilibrium when a better matching technology (organized exchanges) exists. This is puzzling because some corporate debt claims actually used to be traded on exchanges in the early 20th century, and important because the structure of this large market has important knock on effects: on who can participate in markets, on how claims are structured (in particular in terms of their maturity) and also how firms finance themselves. In the context of models that build on search theory, this project will explore potential mechanisms that explain 1) what drives the structure of secondary markets for corporate debt, and 2) how this affects firm financing decisions, in particular, debt maturity choice, and 3) what the policy implications are for regulation. Programme(s) FP7-PEOPLE - Specific programme "People" implementing the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007 to 2013) Topic(s) FP7-PEOPLE-2012-CIG - Marie-Curie Action: "Career Integration Grants" Call for proposal FP7-PEOPLE-2012-CIG See other projects for this call Funding Scheme MC-CIG - Support for training and career development of researcher (CIG) Coordinator CITY UNIVERSITY OF LONDON EU contribution € 100 000,00 Address NORTHAMPTON SQUARE EC1V 0HB London United Kingdom See on map Region London Inner London — East Haringey and Islington Activity type Higher or Secondary Education Establishments Administrative Contact Dilly Tawakkul (Dr.) Links Contact the organisation Opens in new window Website Opens in new window Total cost No data
