Abstract
This paper uses individual transaction data on bonds and syndicate loans from European issuers to document market segmentation along national lines: banks manage bond issues because of ties to home institutional investors, and syndicate loans due to ties to home issuers. The evidence supports the hypothesis that historically grown reputational ties between financial institutions and their customers are in part responsible for the slow integration of the European financial market place. Traditionally, home currency investment restrictions for many of Europe's institutional investors were responsible for disproportionate market shares in the home currency markets of bond underwriters. The introduction of the Euro should greatly increase competition in bond underwriting. This, however, may benefit non-EU investment banks the most.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of International Financial Markets, Institutions and Money
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
