Similar Search Results

Benmelech, Efraim - 2020

economy slows, or average credit spreads widen. This contingent valuation of collateral or security, coupled with the borrower …

Persistent link: https://www.econbiz.de/10012479323

Repo and Securities Lending

Adrian, Tobias - 2012

: principal amount, interest rate, collateral type, haircut, tenor, and counterparty …

Persistent link: https://www.econbiz.de/10012460111

High-Yield Debt Covenants and Their Real Effects

Bräuning, Falk; Ivashina, Victoria; Ozdagli, Ali - National Bureau of Economic Research - 2022

High-yield debt including leveraged loans is characterized by incurrence financial covenants, or "cov-lite" provisions. A traditional loan agreement includes maintenance covenants, which require continuous compliance with the covenant threshold, and their violation shifts the control rights to...

Persistent link: https://www.econbiz.de/10013172187

Private Pensions as Corporate Debt

Feldstein, Martin - 1981

This paper begins by examining the ways in which pension liabilities are and are not like corporate bonds. Some conceptual issues involved in valuing future pension obligations are then discussed. The second section considers the advantage to firms of fully funding their pension obligations and...

Persistent link: https://www.econbiz.de/10012478415

Securities laws and the choice between loans and bonds for highly levered firms

Prilmeier, Robert - 2019

In contrast to bonds, levered loans do not require SEC registration. We show that this distinction plays an important role in firms' choice between funding through loans and bonds and helps understand why the market share of cov-lite loans has increased so much. Compared to cov-heavy loans,...

Persistent link: https://www.econbiz.de/10012479423

Search for Yield in Large International Corporate Bonds : Investor Behavior and Firm Responses

Calomiris, Charles W. - 2019

Emerging market corporations have significantly increased their borrowing in international markets since 2008. We show that this increase was driven by large-denomination bond issuances, most of them with face value of exactly US$500 million. Large issuances are eligible for inclusion in...

Persistent link: https://www.econbiz.de/10012479928

Corporate Foreign Bond Issuance and Interfirm Loans in China

Huang, Yi - 2018

This paper uses firm-level data to document and analyze international bond issuance by Chinese non-financial corporations and the use of the proceeds of issuance. We find that dollar issuance is positively correlated with the differential between domestic and foreign interest rates. This...

Persistent link: https://www.econbiz.de/10012453203

Corporate Debt Structure and the Financial Crisis

De Fiore, Fiorella - 2014

We present a DSGE model where firms optimally choose among alternative instruments of external finance. The model is used to explain the evolving composition of corporate debt during the financial crisis of 2008-09, namely the observed shift from bank finance to bond finance, at a time when the...

Persistent link: https://www.econbiz.de/10012457936

Insolvency Resolution and the Missing High Yield Bond Markets

Becker, Bo - 2013

In many countries, bankruptcy is associated with low recovery by creditors. We develop a model of corporate credit markets in such an environment. Corporate credit is provided by either a bond market or risk-averse banks. Restructuring of insolvent firms happens out of court if in-court...

Persistent link: https://www.econbiz.de/10012459246

Collateral Pricing

Benmelech, Efraim - 2008

We examine how collateral affects the cost of debt capital. Theories based on borrower moral hazard and limited … pledgeable income predict that collateral increases the availability of credit and reduces its price. Testing these theories is … complicated by the very selection problem which they imply: creditors will demand collateral precisely from those borrowers who …

Persistent link: https://www.econbiz.de/10012464773

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