Examples of Liberty Bonds in a sentence
We paid the bankers their profits when we bought Liberty Bonds at $100.00 and sold them back at $84 or $86 to the bankers.
In Section 5.1, I documented how the Liberty Bonds impacted corporate financing.
Columns (1) and (2) show that the average maturity of corporate bonds decreased significantly from 1917 to 1919, after Liberty Bonds flooded the financial markets, relative to 1916.
For instance, nearly 40% of the Liberty Bonds offered in 1918 had a maturity of 10 years, and the Vic- tory Bonds offered in 1919 had a maturity of 4 years.
Moreover, the likelihood of offering notes with maturity less than 1 year increased between 1917 and 1919 compared to 1916 (column (1)).More careful analyses that exploit variation in the maturity of Liberty Bonds show that investment-grade firms were very flexible in changing their debt maturity.
To measure the impact of Liberty Bonds on the security-type choice empirically, I estimate a multinomial logit.
The first campaign started on April 28, 1917, and the Federal Reserve (Fed), acting as the agency for distribution of Liberty Bonds, took subscriptions between May 14 and June 15 (Sutch (2015), Annual Report of the Federal Reserve, 1918).
Consistent with gap-filling theory, investment-grade firms did not increase the share of bonds of corresponding maturities of the Liberty Bonds (columns (2) and (4), panel C of Table XI).However, the response of speculative-grade firms was not as flexible.
To finance war expenditures, the U.S. offered large amounts of government bonds called Liberty Bonds.
This implies that the measured coefficient could be larger if firms had not shifted.The other implication of the segmented financial markets is that the crowding-out impact on short-term notes would be limited, since the Liberty Bonds had maturities longer than 10 years, except for the last one (Greenwood et al.