Premium
THE INFLUENCE OF OFFERING YIELD ON UNDERWRITING SPREAD
Author(s) -
Marr M. Wayne,
Thompson G. Rodney
Publication year - 1984
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/j.1475-6803.1984.tb00384.x
Subject(s) - underwriting , yield (engineering) , business , investment (military) , bond , investment banking , monetary economics , actuarial science , economics , financial system , finance , political science , materials science , politics , law , metallurgy
This paper presents a model that explains variation in underwriting spreads among primary issues of investment quality bonds and assesses the impact that offering yields have on underwriting spreads. The results indicate that issues having higher (lower) offering yields pay lower (higher) underwriting spreads.