IDEAS home Printed from https://ideas.repec.org/a/cup/jfinqa/v15y1980i02p435-447_00.html
   My bibliography  Save this article

An Analysis of the Relationship between Underwriter Spread and the Pricing of Municipal Bonds

Author

Listed:
  • Sorensen, Eric H.

Abstract

Virtually all new state and local governmental bond issues are purchased initially by an underwriter, or syndicate of underwriters, who in turn resells the bonds to investors. The underwriter attempts to sell the bonds for an amount which exceeds his purchase price. The difference is underwriter spread. Of course the probability that the underwriter will actually receive the planned spread is directly related to the yields at which the reoffering is attempted. The purpose of this study is to test and analyze the relationship between reoffering yields for new municipal bond issues and the spread which the underwriter plans to receive. This study differs from previous studies in method of analysis, and in being the first such study to examine underwriter behavior in the bond market.

Suggested Citation

  • Sorensen, Eric H., 1980. "An Analysis of the Relationship between Underwriter Spread and the Pricing of Municipal Bonds," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 15(2), pages 435-447, June.
    • Handle: RePEc:cup:jfinqa:v:15:y:1980:i:02:p:435-447_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0022109000006402/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amanda Beck & Collin Gilstrap & Jordan Rippy & Brian Vansant, 2021. "Strategic reporting by nonprofit hospitals: an examination of bad debt and charity care," Review of Accounting Studies, Springer, vol. 26(3), pages 933-970, September.
    2. M. Wayne Marr & G. Rodney Thompson, 1984. "The Influence Of Offering Yield On Underwriting Spread," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 7(4), pages 323-328, December.
    3. Daniels, Kenneth N. & Vijayakumar, Jayaraman, 2007. "Does underwriter reputation matter in the municipal bond market?," Journal of Economics and Business, Elsevier, vol. 59(6), pages 500-519.
    4. L Paul Hsueh & P. R. Chandy, 1989. "An Examination Of The Yield Spread Between Insured And Uninsured Debt," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 12(3), pages 235-244, September.
    5. Kenneth Daniels & Jayaraman Vijayakumar, 2001. "The Competitive Impact of Commercial Bank Underwriting on the Market for Municipal Revenue Bonds," Journal of Financial Services Research, Springer;Western Finance Association, vol. 20(1), pages 57-75, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jfinqa:v:15:y:1980:i:02:p:435-447_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jfq .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.