Chapter 36. Short Sale Constraints in the Equity Market and the Term Structure of Interest Rates
36.1 Introduction 520
36.2 Data and Method 520
36.3 Main Findings 526
The September 2008 ban on the short selling of financial stocks had a great impact on U.S. equity markets. This chapter shows how the ban affected key term-structure variables, such as default spread, term spread, and inflation-related ...