Event-study driven research has produced a consensus that loans are unique relative to other financial contracts. But these studies assume that small samples of loan announcements adequately represent the loan population. We find that loan announcements are rare and driven by factors such as...

This paper studies the structure of syndicated loans and analyzes the participation of investment banks in syndicated loans. We find that investment banks are more likely to lead syndicated loans to riskier borrowers. They also tend to participate more in the riskier facilities of a...

We empirically test the hypothesis that trade flows and debt flows complement each other as argued by Rajan and Zingales (2003). Using a dataset of loans made to U.S. borrowers, we find that the probability of a foreign bank participation in a loan increases as the bilateral trade between the US...

This paper presents a theory to explain the economic value in tranching of syndicated loans. Over 35% of syndicated loans originated in the nineties had multiple tranches. These tranches were either for different types of loans (example, revolving and term loans) or had different terms and...

This paper recognizes the importance of tranching and establishes tranching as an integral component of a syndicated loan structure. We present a theory to explain the economic value of tranching and show that riskier firms are more likely to take loans with multiple facilities and therefore,...