The determinants of trading volume of high-yield corporate bonds

Gordon J. Alexander, Amy K. Edwards, Michael G. Ferri

Research output: Contribution to journalArticlepeer-review

61 Scopus citations

Abstract

This paper examines the trading volume of a sample of high-yield corporate bonds reported on Nasdaq's Fixed Income Pricing System (FIPS). This analysis of volume allows us to better understand the liquidity of debt issues. We demonstrate that the 'mandatory' FIPS issues trade fairly actively. We also conduct tests of the determinants of trading volume and produce evidence that mandatory issues with higher volume tend to be larger, more recently issued, and the obligations of firms without publicly traded equity.

Original languageEnglish (US)
Article number37
Pages (from-to)177-204
Number of pages28
JournalJournal of Financial Markets
Volume3
Issue number2
DOIs
StatePublished - 2000

Bibliographical note

Copyright:
Copyright 2017 Elsevier B.V., All rights reserved.

Keywords

  • FIPS
  • G10
  • G18
  • High-yield bonds
  • Liquidity
  • Transparency
  • Volume

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