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Central counterparties
Koeppl, Thorsten V.; Monnet, Cyril - Center for Financial Studies - 2008
Central counterparties (CCPs) have increasingly become a cornerstone of financial markets infrastructure. We present a model where trades are time-critical, liquidity is limited and there is limited enforcement of trades. We show a CCP novating trades implements efficient trading behaviour. It...
Persistent link: https://www.econbiz.de/10010958500
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Performance-sensitive debt: The intertwined effects of performance measurement and pricing grid asymmetry
Bannier, Christina E.; Wiemann, Markus - Center for Financial Studies - 2014
This paper studies the use of performance pricing (PP) provisions in debt contracts and compares accounting-based with rating-based pricing designs. We find that rating-based provisions are used by volatile-growth borrowers and allow for stronger spread increases over the credit period....
Persistent link: https://www.econbiz.de/10010958543
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Collateral, default risk, and relationship lending: An empirical study on financial contracting
Elsas, Ralf; Krahnen, Jan Pieter - Center for Financial Studies - 2000
lending, borrower quality and collateral as a key variable in loan contract design. We used a unique data set based on the … borrower quality and the incidence or degree of collateralization. Our results indicate that the use of collateral in loan … housebanks do require more collateral from their debtors, thereby increasing the borrower's lock-in and strengthening the banks …
Persistent link: https://www.econbiz.de/10010958616
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Collateral, relationship lending and financial distress: An empirical study on financial contracting
Elsas, Ralf; Krahnen, Jan Pieter - Center for Financial Studies - 2002
This paper analyses the role of collateral in loan contracting when companies are financed by multiple bank lenders and … the view that collateral is a strategic instrument intended to influence the bargaining position of banks. Our result …
Persistent link: https://www.econbiz.de/10010958813