Professor of Finance
Norman Schürhoff is Full Professor of Finance at the University of Lausanne. He joined SFI in 2006 and has held an SFI Senior Chair since 2010. He obtained his PhD in Financial Economics from Carnegie Mellon University. Prof. Schürhoff’s work has been published in the top academic journals in finance.
His main research interests lie in corporate governance, capital structure dynamics, and bond market microstructure.
In a recent study, Prof. Schürhoff and his co-authors study the OTC market and focus on the frictions that have the largest effect on execution costs and liquidity in the corporate bond market. Which is more costly? Calling around for the best execution? Or establishing and maintaining a long-lasting trading relationship? Using trade-by-trade data between 2001 and 2014 on corporate bonds issued by insurance companies, the researchers establish several stylized facts regarding bilateral trading and price formation in OTC markets: execution costs depend on the insurer type, the dealer they trade with, and relationship networks. Further analysis shows that execution costs are higher for smaller insurers, smaller dealers, and smaller networks.