Without a Trace: The Importance of Information in Markets

Trimbath, Susanne

doi:10.2139/ssrn.519228

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Without a Trace: The Importance of Information in Markets

Milken Institute Working Paper No. 2004-01

14 Pages Posted: 22 Mar 2004

See all articles by Susanne Trimbath

Susanne Trimbath

STP Advisory Services, LLC; Creighton University, Department of Finance and Economics; Bellevue University - College of Business

Date Written: January 20, 2004

Abstract

Economists and practitioners alike would agree that information plays an important role in capital markets. But the practical job of gathering, organizing and disseminating information in markets is too often left to chance. This paper dramatizes the difficulties that can occur when that happens by using the high yield market as an example. The transition from rapid expansion in the 1980s to stable growth in the 1990s was not without its informational road-bumps. The main point of the paper is to emphasize the importance of the informational role being played by industry organizations such as the Loan Syndication and Trading Association (LSTA) in the U.S.

Keywords: Syndicated loan market, financial markets, information and market efficiency

JEL Classification: E44, G14, O16

Suggested Citation: Suggested Citation

Trimbath, Susanne, Without a Trace: The Importance of Information in Markets (January 20, 2004). Milken Institute Working Paper No. 2004-01, Available at SSRN: https://ssrn.com/abstract=519228 or http://dx.doi.org/10.2139/ssrn.519228