---
title: A Preferred-Habitat Model with a Corporate Sector
url: https://www.ml-quant.com/papers/ssrn/4603103/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4603103
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4603103
featured: 2023-10-18
citations: 0
topic: Corporate Finance
---


# A Preferred-Habitat Model with a Corporate Sector

The research introduces a model where the same investor prices government and corporate bonds, causing credit spread variations beyond credit quality changes, driven by credit quality variation, risk-neutral correlation of risk factors, and portfolio rebalancing.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4603103
- Identifier: SSRN 4603103
- Released: 2023-10-16
- First featured: Quant Letter No. 22 (2023-10-18): https://www.ml-quant.com/issues/2023-10-18/
- Citations (Semantic Scholar): 0
- Published in: not yet
- Topic: Corporate Finance

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