Seminar 217, Risk Management: Relationship Trading in OTC Markets

Seminar 217, Risk Management: Relationship Trading in OTC Markets

Risk Seminar
Feb 28, 2017, 11:00 AM - 01:00 PM | 639 Evans Hall | Happening As Scheduled
Speaker: Terrence Hendershott, UC Berkeley (Speaker - Featured)
Abstract: We examine the network of bilateral trading relations between insurers and dealers in the over-the-counter corporate bond market. Using comprehensive regulatory data we find that many insurers use only one dealer while the largest insurers have a network of up to eighty dealers. To understand the heterogeneity in network size we build a model of decentralized trade in which insurers...