Add to ORKGA measure of heterogeneous beliefs based on the high-frequency credit market information is associated with an increase in the firm's debt issuance and investments and a decrease in the cost of debt the following month. Inferring an elevated credit-market belief as investors' optimistic outlook on firms' prospects predicts future credit returns. Expectations move with the leverage ("moneyness") levels and correlate with risk factors. The existence of predictable mean reversion in credit market conditions reinforces these results
Intuition suggests that firms with higher cash holdings should be ‘safer ’ and have lower credit spr...
We develop a model of asset trading with financial leverage in an economy with a continuum of invest...
Intuition suggests that firms with higher cash holdings are safer and should have lower credit sprea...
We study the link between credit spreads and the heterogeneous formation of expectations in an econo...
We study the \u85nancing of speculative asset-market booms in a standard frame-work with heterogeneo...
This paper investigates the role of credit market sentiments and investor beliefs on credit cycle dy...
Recent research establishes a negative relation between stock returns and dispersion of analysts' ea...
This paper extends Matsuyama's endogenous credit cycle model to account for recent findings on the r...
We present a model of credit cycles arising from diagnostic expectations – a belief formation mechan...
I introduce a novel proxy of investor sentiment and differences of opinion among trend-chasing inves...
This paper proposes an aggregation scheme of subjective bond return expectations based on the histor...
The emergence of algorithmic high-frequency trading in the market for credit risk affords accurate i...
The valuation of risky debt is central to theoretical and empirical work in corporate finance. Altho...
We present a model of credit cycles arising from diagnostic expectations—a belief formation mechanis...
This paper proposes a new methodology to infer investors ’ expectations about the speed of leverage ...
Intuition suggests that firms with higher cash holdings should be ‘safer ’ and have lower credit spr...
We develop a model of asset trading with financial leverage in an economy with a continuum of invest...
Intuition suggests that firms with higher cash holdings are safer and should have lower credit sprea...
We study the link between credit spreads and the heterogeneous formation of expectations in an econo...
We study the \u85nancing of speculative asset-market booms in a standard frame-work with heterogeneo...
This paper investigates the role of credit market sentiments and investor beliefs on credit cycle dy...
Recent research establishes a negative relation between stock returns and dispersion of analysts' ea...
This paper extends Matsuyama's endogenous credit cycle model to account for recent findings on the r...
We present a model of credit cycles arising from diagnostic expectations – a belief formation mechan...
I introduce a novel proxy of investor sentiment and differences of opinion among trend-chasing inves...
This paper proposes an aggregation scheme of subjective bond return expectations based on the histor...
The emergence of algorithmic high-frequency trading in the market for credit risk affords accurate i...
The valuation of risky debt is central to theoretical and empirical work in corporate finance. Altho...
We present a model of credit cycles arising from diagnostic expectations—a belief formation mechanis...
This paper proposes a new methodology to infer investors ’ expectations about the speed of leverage ...
Intuition suggests that firms with higher cash holdings should be ‘safer ’ and have lower credit spr...
We develop a model of asset trading with financial leverage in an economy with a continuum of invest...
Intuition suggests that firms with higher cash holdings are safer and should have lower credit sprea...