League table: A study of the competition to underwrite floating rate debt

James S. Ang, Shaojun Zhang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

4 Citations (Scopus)


We find evidence of price and non-price competitions in the competition for market shares among underwriters. The market pricing for underwriter's service is rationally determined. Gross spread is a function of cost of production and distribution, underwriter's organizational assets, and the extent of competition. Strategic discount pricing affects market share in the short run. There exists evidence of client loyalty to an underwriter, albeit much weaker than expected. The number of effective competitors for any particular issuer is quite small, ranging from three to five. Commercial banks are more aggressive in pricing to first-time issuers and have gained limited success in attracting clients of investment banks. They expand the market by bringing in new issuers, while causing gross spread to fall.
Original languageEnglish
Pages (from-to)329-349
Number of pages21
JournalJournal of International Financial Markets, Institutions and Money
Issue number4
Publication statusPublished - 1 Oct 2004
Externally publishedYes


  • Bank competition
  • Client loyalty
  • Market share

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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