000			01144nam a22001457a 4500
999			_c522435 _d522435
008			230411b ||||| |||| 00| 0 eng d
100			_aKoijen, Ralph S. J. and Yogo, Motohiro _940040
245			_aUnderstanding the ownership structure of corporate bonds
260			_aAmerican Economic Review: Insights
300			_a5(1), Mar, 2023: p.73-92
520			_aInsurers are the largest institutional investors of corporate bonds. However, a standard theory of insurance markets, in which insurers maximize firm value subject to regulatory or risk constraints, predicts no allocation to corporate bonds. We resolve this puzzle in an equilibrium asset pricing model with leverage-constrained households and institutional investors. Insurers have relatively cheap access to leverage through their underwriting activity. They hold a leveraged portfolio of low-beta assets in equilibrium, relaxing other investors' leverage constraints. The model explains recent empirical findings on insurers' portfolio choice and its impact on asset prices.- Reproduced
773			_aAmerican Economic Review: Insights
906			_aINSURANCE
942			_cAR