Brown Bag Seminar - Giorgio Ottonello (Wirtschaftsuniversität Wien)

Als Vortragenden dürfen wir Giorgio Ottonello (Wirtschaftsuniversität Wien) begrüßen.

Er wird sein Paper "Shadow Discounts" (joint with Tomy Lee, Isacco Lotti, Florian Nagler, and Chaojun Wang) vorstellen.

Abstract:

Centralized trading platforms should improve competition in OTC markets. Using transaction records from the U.S. corporate bond market and exploiting variation within client dealer relationships, we find no evidence that clients receive better secondary market trading terms after adopting a platform. To reconcile this puzzling finding, we present a model in which relationship dealers operate in both primary and secondary markets. A central insight, for which we find strong empirical support, is that dealers respond to clients' improved outside options not by changing secondary market terms, but by granting larger primary market allocations. Guided by the model, we estimate that platform adoption is worth 77% of clients' pre adoption profits from primary market allocations. Overall, the effects of platforms in OTC markets are more complex than previously thought.

Das Brown Bag Seminar findet am 18. November 2026 von 12:00-13:00 Uhr im Raum D4.4.008 statt.