FRIC Brown Bag Seminar with Bernt Arne Odegaard, University of Stavanger

FRIC Center for Financial Frictions and the Department of Finance are pleased to announce the upcoming Brown Bag Seminar with Bernt Arne Odegaard, University of Stavanger.

Title: Bond Trading Costs, some Norwegian Estimates

Abstract:
We estimate bond trading costs for a thinly traded market for bonds, the Oslo Stock Exchange. Using the Corwin and Schultz [2012] spread estimate, we show that while Treasury securities are the cheapest bonds to trade, at the OSE estimated spreads of other bonds, such as covered, municipal, and corporate, are much closer to Treasury securities than is the case in the US, where both corporate and municipal bonds are trading at significantly higher implicit trading costs than Treasuries.  We also compare bond trading costs at the OSE with similar estimates for equities, and find that the implicit costs for all classes of bonds are lower than those for equities.

Location
Solbjerg Plads 3, 2000 Frederiksberg
Room: SP D4.20