I demonstrate that U.S. corporate bond dealers mitigate adverse selection risk by passing potentially informed transactions to institutional investors that become liquidity providers to informed traders. I obtain these results in a theoretically-motivated empirical setup that contrasts corporate bond price reversals in bonds with different information asymmetry, trading volume, and dealers’ capital commitment. I find strong price reversals that become less pronounced following high-trading-volume days. The effect is the strongest when dealers’ end-of-day inventory does not change and when information motives for trading are the most acute: in bonds with the highest information asymmetry and before issuers’ earnings announcements. The results suggest that private information reveals itself in prices on high-volume days when dealers do not accept overnight inventory risk.