Foreign Entry Into Underwriting Services

Download or read book Foreign Entry Into Underwriting Services written by Mark M. Spiegel and published by DIANE Publishing. This book was released on 2010-10 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines the impact of foreign underwriting activity on bond markets using issue-level data in the Japanese ¿Samurai¿ and euro-yen bond markets. Firms choosing Japanese underwriters tend to be Japanese, riskier, and smaller. Japanese underwriting fees, while higher overall on average, are actually lower after conditioning for issuer characteristics. The authors conducted a matching exercise to examine the 1995 liberalization of foreign access to the ¿Samurai¿ bond market, using yen-denominated issues in the euro-yen market as a control. Foreign entry led to a significant decrease in underwriting fees in the Samurai bond market. The market for underwriting services is segmented by nationality, as issuers appear to have preferred habitats. Illus.