More from these Authors

• Article | Review of Financial Studies | June 2013

  Issuer Quality and Corporate Bond Returns

  Robin Greenwood and Samuel G. Hanson

  We show that the credit quality of corporate debt issuers deteriorates during credit booms, and that this deterioration forecasts low excess returns to corporate bondholders. The key insight is that changes in the pricing of credit risk disproportionately affect the financing costs faced by low quality firms, so the debt issuance of low quality firms is particularly useful for forecasting bond returns. We show that a significant decline in issuer quality is a more reliable signal of credit market overheating than rapid aggregate credit growth. We use these findings to investigate the forces driving time-variation in expected corporate bond returns.

  Citation:

  Greenwood, Robin, and Samuel G. Hanson. "Issuer Quality and Corporate Bond Returns." Review of Financial Studies 26, no. 6 (June 2013): 1483–1525. (Internet Appendix Here.)

  CiteView DetailsRead Now

  Related

• Teaching Note | HBS Case Collection | 2013

  H Partners and Six Flags

  Robin Greenwood, Julie Messina and Jared Dourdeville

  Teaching Note for #211090 & #211096

  Keywords: Behavioral Finance; Private Equity; Insolvency and Bankruptcy; Debt Securities; Bonds; Investment; Entertainment and Recreation Industry; Financial Services Industry; United States;

  Citation:

  Greenwood, Robin, Julie Messina, and Jared Dourdeville. "H Partners and Six Flags." Harvard Business School Teaching Note 213-122, May 2013.

  CiteView DetailsPurchase

  Related

• Case | HBS Case Collection | 2013 (Revised from original 2011 version)

  H Partners and Six Flags

  Robin Greenwood and Michael Gorzynski

  Rehan Jaffer, the founder of hedge fund H Partners, is considering what to do with his investment in Six Flags. H Partners had invested a significant amount of the firm's capital in the senior bonds of U.S.-based Six Flags, following that company's bankruptcy filing.

  Keywords: Behavioral Finance; Private Equity; Insolvency and Bankruptcy; Debt Securities; Bonds; Investment; Entertainment and Recreation Industry; Financial Services Industry; United States;

  Citation:

  Greenwood, Robin, and Michael Gorzynski. "H Partners and Six Flags." Harvard Business School Case 211-090, May 2013. (Revised from original March 2011 version.)

  CiteView DetailsPurchase

  Related