This is very surprising and it is a really bad news for CoCos, specially for those that have low coupon for the first call
Revising things makes people think they are better, absent objective improvement. We refer to this phenomenon as the revision bias. […]
We propose that the fact that revisions typically are intended to be improvements over their originals gives rise to an overgeneralized heuristic that revisions necessarily are improvements over their originals. Yet, as any author responding to editorial reviews knows, not every revision turns out better than before. […]
Things that are objectively unchanged (or even made worse) in the revision process may nonetheless be adopted, so long as observers believe they possess a “revised” version.
images { Sculpture by Yoan Capote | Barbara Kruger-annotated photo of Eliot Spitzer for New York magazine, 2008 }
