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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. Hornuf, Lars & Engert, Andreas, 2013. "Can Network Effects Impede Optimal Contracting in Debt Securities?," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79867, Verein für Socialpolitik / German Economic Association.
    4. 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.

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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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