Events

Oct
02

MBA One-on-One Information Session

Thu., Oct 2nd, 2014 11:00 until 6:30 PM

Designed for individuals who are already familiar with LeBow College of Business, our one-on-one information sessions give you the opportunity to participate in an individualized question and answer session with an admissions counselor. Each of these personalized meetings are specialized to meet your needs.

Gerri C. LeBow Hall
4th Floor, Graduate Office
3220 Market Street
Philadelphia, PA 19104
Oct
02

MBA Career Services Employer of the Week: Vanguard

Thu., Oct 2nd, 2014 4:30 until 6 PM

MBA/MS students are invited to join Vanguard representatives for a discussion of MBA internship and full-time financial analysis opportunities at the company’s global corporate headquarters in Malvern PA. Positions are posted on Hire LeBow.

Gerri C. LeBow Hall
GHall 409
3220 Market Street
Philadelphia, PA 19104
Oct
03

"Comovement of Corporate Bonds and Equities" Authors: Jack Bao (Federal Reserve Board of Governors) and Kewei Hou (Ohio State Univ.)

Fri., Oct 3rd, 2014 10:30 until 11:50 AM

Abstract
We study heterogeneity in the comovement of corporate bonds and equities, both
at the bond level and at the rm level. To formalize empirical predictions, we use
an extended Merton model to illustrate that, holding the actual maturity constant,
corporate bonds that are due late relative to the rest of the bonds in their issuers’
maturity structure should have stronger comovement with equities. In contrast, an
endogenous default model with equity pay-in suggests that a bond’s position in its
issuer’s maturity structure has little relation with the strength of the comovement.
In the data, we nd that bonds that are later in their issuers’ maturity structure
comove more strongly with equities, consistent with the prediction of the extended
Merton model. In addition, we nd that the comovement between bonds and equities
is stronger for rms with higher credit risk as proxied by higher book-to-market ratios
and lower distance-to-default even after controlling for ratings. Our results highlight
the important e ects of bond and rm level characteristics on the relative returns of
corporate bonds and equities.

Gerri C. LeBow Hall
208
3220 Market Street
Philadelphia, PA 19104