신승훈 연구실

I am an Associate Professor of Finance at the KAIST College of Business, with a joint appointment in the Department of AX at the KAIST College of AI. Prior to joining KAIST, I was previously at Aalto University in Finland (2017–2024). My research focuses on asset pricing, asset management, market structure, and investor behavior. I study how various frictions in financial markets shape asset prices, liquidity, and investor behavior, often using large-scale data and AI tools. I enjoy traveling and experiencing different cultures, especially through local food and everyday life. The convention when calculating corporate bond trading costs is to estimate bid–ask spreads that customers pay, implicitly assuming that dealers always provide liquidity to customers. We show that, contrary to this assumption, customers increasingly provide liquidity following the adoption of post-2008 banking regulations, and thus, conventional bid–ask spread measures underestimate the cost of dealers’ liquidity provision. Among large trades wherein dealers use inventory capacity, customers pay 40%–60% wider spreads than before the crisis. Customers’ balance-sheet capacity and their trading relationships with dealers are important determinants of customer liquidity provision. Corporate bond mutual funds engage in liquidity transformation, raising concerns among academics and policy makers that large redemptions will lead to asset fire sales. We find little evidence, however, that bond fund redemptions drive fire sale price pressure after controlling for time-varying issuer-level information that could also affect funds’ trading decisions, using a novel identification strategy that exploits same-issuer bonds held by funds with differing outflows. We attribute our findings, which contrast with thos