Acharya, Viral V.; Jager, Maximilian; Steffen, Sascha - National Bureau of Economic Research - 2023
Over the past two decades, banks have increasingly focused on offering contingent credit in the form of credit lines as … a primary means of corporate borrowing. We review the existing body of research regarding the rationales for banks … repay credit lines are put options issued by banks, which are exercised by firms in a correlated manner during periods of …
