In the News

“Intoxicated Investors” Slammed Corporate Bonds

What caused corporate bond yields to balloon as the financial crisis deepened in 2007 and 2008?

This article cites Associate Professor Ayako Yasuda’s study “The Behavior of Intoxicated Investors: The Role of Institutional Investors in Propagating the Crisis of 2007-2008,” which found that corporate bonds held by investors that had high exposures to securitized bonds experienced greater price declines in late 2007 and 2008.