Nonbank lenders are an increasingly important part of the syndicated loan market, particularly for riskier borrowers who require intensive monitoring. Interestingly, when nonbank lenders arrange loans, they impose fewer and loose covenants. Although the prior literature shows that banks play an...

Evidence shows that nonbanks, which are now significant participants in the corporate loan market, exploit information gained from lending to trade in public securities. We examine whether these institutions use loan-based information to facilitate merger and acquisition (M&A) deals. We find...