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Record W4321438919 · doi:10.1016/j.qref.2023.02.007

Outliers and momentum in the corporate bond market

2023· article· en· W4321438919 on OpenAlexaff
Valentina Galvani, Lifang Li

Bibliographic record

VenueThe Quarterly Review of Economics and Finance · 2023
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicFinancial Markets and Investment Strategies
Canadian institutionsUniversity of Alberta
Fundersnot available
KeywordsOutlierMomentum (technical analysis)IssuerEconometricsBondCorporate bondDiversification (marketing strategy)EconomicsProfitability indexPortfolioYield (engineering)Financial economicsBusinessMathematicsStatisticsFinancePhysicsMarketing

Abstract

fetched live from OpenAlex

How we filter outliers matters in empirical research. As a demonstration, we analyze how momentum returns respond to different outlier treatments in the corporate bond market TRACE database. We find that momentum profitability depends crucially on return outliers. Specifically, outlier trimming vanishes momentum returns, whereas winsorization yields a robust but conservative assessment of the momentum effect. Positive outliers are better than negative ones at identifying bonds that display return continuation and, thus, yield momentum gains. Price and volume-based sample treatments show that momentum gains stem from low-priced bonds and bonds solely traded by retail investors. Lastly, finer partitions of the bond cross-section deliver superior momentum gains without sacrificing portfolio diversification over bonds and issuers.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.002
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: Theoretical or conceptual
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.440
Threshold uncertainty score0.446

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0020.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.037
GPT teacher head0.218
Teacher spread0.181 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations6
Published2023
Admission routes1
Has abstractyes

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