Investment Commonality across Insurance Companies: Fire Sale Risk and Corporate Yield Spreads
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DOI: 10.1017/s0022109018001515
Abstract: Insurance companies often follow highly correlated investment strategies. As major investors in corporate bonds, their investment commonalities subject investors to fire sale risk when regulatory restrictions prompt widespread divestment of a bond following a rating… read more here.
Keywords: fire sale; yield spreads; sale risk; insurance companies ... See more keywords
Fire-Sale Acquisitions and Intra-Industry Contagion
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DOI: 10.2139/ssrn.2396705
Abstract: This paper presents empirical evidence on the combined effects of target firm distress and industry-level illiquidity on acquisition outcomes and industry-specific contagion. When the target industry is in distress, I find that the fire-sale effects… read more here.
Keywords: sale acquisitions; industry; contagion; fire sale ... See more keywords