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PETER FELDHÜTTER

Assistant Professor of Finance (since 2010)

Email: pfeldhutter@london.edu

Phone: +44 (0) 20 7000 8277

London Business School

Regent's Park

London

NW1 4SA

United Kingdom

 

Curriculum Vitae

 


RESEARCH INTERESTS

 

Empirical Asset Pricing, Credit Risk, Fixed Income, Liquidity Risk, Market Microstructure


PUBLISHED PAPERS

 

Corporate Bond Liquidity Before and After the Onset of the Subprime Crisis (with Jens Dick-Nielsen and David Lando), 2012, Journal of Financial Economics, 103, 471-492.

   Illiquidity premia in US corporate bonds were large during the subprime crisis. Bonds become less liquid when financial distress hits a lead underwriter.

            Monthly time series 2002:07-2009:12 of illiquidity of all US corporate bonds, industrial bonds, and financial bonds: Download

            Our results are used in an Oliver Wyman study on the impact of the Volcker Rule on corporate bond liquidity. The study and our results are discussed in New York Times and Financial  Times.

 

The Same Bond at Different Prices: Identifying Search Frictions and Selling Pressures, 2012, Review of Financial Studies, 25, 1155-1206.

   A new way to measure selling pressures in over-the-counter markets. The evidence shows strong selling pressure in GM bonds in May 2005 and market-wide selling pressures in US corporate bonds during the subprime crisis. 

 

Systematic and Idiosyncratic Default Risk in Synthetic Credit Markets (with Mads Stenbo Nielsen), 2012, Journal of Financial Econometrics, 10, 292-324.

   How to estimate an intensity-based model for correlated defaults without the usual assumptions. The model matches the time-series variation of CDO tranche spreads well.

Previously entitled ‘‘An Empirical Investigation of an Intensity-Based Model for Pricing CDO Tranches

 

Decomposing Swap Spreads (with David Lando), 2008, Journal of Financial Economics, 88, 375-405.

   Use swap rates not Treasury yields as riskless rates. Hedging activity in the MBS market occasionally pushes swap rates down. 

            Society of Quantitative Analysts award for best paper on quantitative investment, Western Finance Association, 2006

 


WORKING PAPERS

 

Short-Term Corporate Bond Yield Spreads, April 2012

 

Keep it Simple: Dynamic Bond Portfolios Under Parameter Uncertainty (with Linda S. Larsen, Claus Munk, and Anders B. Trolle), March 2012

 

Can Affine Models Match the Moments in Bond Yields?, April 2008