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Underwriter competition and gross spreads in the eurobond market

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  • Kollo, Michael G.

Abstract

We investigate the competitive landscape of underwriting services in the Eurobond market including the choice of underwriter and underwriter gross spread. We find a significant but declining association between the home market of the Eurobond's currency of denomination and that of the lead underwriter. These bonds underwritten by underwriters 'local' to the currency also carry significantly lower underwriter gross spreads vis- JEL Classification: G15, G24

Suggested Citation

  • Kollo, Michael G., 2005. "Underwriter competition and gross spreads in the eurobond market," Working Paper Series 550, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:2005550
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    References listed on IDEAS

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    Cited by:

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    3. Engert, Andreas & Hornuf, Lars, 2018. "Market standards in financial contracting: The Euro’s effect on debt securities," Journal of International Money and Finance, Elsevier, vol. 85(C), pages 145-162.
    4. Carbo-Valverde, Santiago & Rodriguez-Fernandez, Francisco & Saunders, Anthony, 2021. "Underwriting bank bonds: Information sharing, certification and distribution networks," Journal of Corporate Finance, Elsevier, vol. 70(C).

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    More about this item

    Keywords

    eurobond market; underwriter competition; underwriter spreads;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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