The Regulatory Spillover Effects of Classifying Municipal Bonds as High-Quality Liquid Assets

I very much appreciate the helpful comments and suggestions of Xiumin Martin (editor) and two anonymous referees. I am grateful for the support and guidance of my dissertation committee members, Michael Iselin and Gerard McCullough, and I am especially grateful to my advisors, Helen Zhang and Pervin Shroff. I would also like to thank Christine Cuny, Ivan Ivanov (discussant), Aneesh Raghunandan, Delphine Samuels, Hojun Seo, Oscar Timmermans, Frank Zhou, workshop participants at the University of Minnesota, National University of Singapore, Cornell University, The London School of Economics and Political Science, Cornerstone Research, Georgia Institute of Technology, conference participants at the 2020 Brookings Institution Municipal Finance Conference, and conference participants at the 2023 Swiss Accounting Research Alpine Camp for helpful comments and suggestions. I thank Bruce Floberg (formerly of RBC), Carole Fleck (University of Minnesota), and Todd Hurley (St. Paul Port Authority) for sharing their institutional knowledge of the municipal bond market. I thank Marc Joffe and Frank Partnoy for compiling and sharing credit ratings data. I gratefully acknowledge financial support from the Mitch Daniels School of Business at Purdue University.

Jacob C. Ott, Purdue University, Mitch Daniels School of Business, Department of Accounting, West Lafayette, IN, USA.

Supplemental material is available online, as linked in the text.

Editor’s note: Accepted by Xiumin Martin, under the Senior Editorship of W. Robert Knechel.