Economic theory conjectures complementarities between the ranking of creditors in formal insolvency proceedings and the … use of collateral in bank loan contracts as well as the exist-ence of relational compared to arm's length lending. In this … neither confirm that a high priority for secured lenders explains an excessive use of collateral in bank loans nor that a …

valuation adjustment termed CVA.The majority of trading counterparties require collateral to be posted to cover bilateral … trading positions and have extensive legal documentation in place to govern the collateral calculation and transfer process … collateral posting process in detail and outline all the main important terminology and terms outlined in the ISDA CSA. Finally …

estate collateral. This is most pronounced for opaque (for example, very young) firms. Through an extension to our model and … our choice of specification, we show that our findings are most consistent with a collateral-value-based credit supply …

as a reduction in bankruptcy-related costs. This trend raises the question as to what drives the frequency with which … default decreases with bankruptcy costs and it increases with the frequency of strategic default – that is, default by firms … which could have honored their obligations. When bankruptcy costs decrease, creditors obtain higher recovery rates out …