Altavilla, Carlo; Gürkaynak, Refet S.; Quaedvlieg, Rogier - 2024
We establish basic facts about the external finance premium. Tens of millions of individual loan contracts extended to … euro area firms allow studying the determinants of the external finance premium at the country, bank, firm, and contract … levels of disaggregation. At the country level, the variance in the premium is closely linked to sovereign spreads, which are …