1.0Liberty Street Economicshttps://libertystreeteconomics.newyorkfed.orgblog authorhttps://libertystreeteconomics.newyorkfed.org/author/blog-author/The Private Premium in Public Bonds? - Liberty Street Economicsrich600338<blockquote class="wp-embedded-content" data-secret="Ew1jkSvRUM"><a href="https://libertystreeteconomics.newyorkfed.org/2012/05/the-private-premium-in-public-bonds/">The Private Premium in Public Bonds?</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://libertystreeteconomics.newyorkfed.org/2012/05/the-private-premium-in-public-bonds/embed/#?secret=Ew1jkSvRUM" width="600" height="338" title="“The Private Premium in Public Bonds?” — Liberty Street Economics" data-secret="Ew1jkSvRUM" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script>
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In a 2012 New York Fed study, Chenyang Wei and I find that interest rate spreads on publicly traded bonds issued by companies with privately traded equity are about 31 basis points higher on average than spreads on bonds issued by companies with publicly traded equity, even after controlling for risk and other factors.https://libertystreeteconomics.newyorkfed.org/wp-content/uploads/sites/2/2012/05/6a01348793456c970c0168e908aa9e970c-450wi.jpg