How does bank distress impact their customers' probability of default and trade credit availability? We address this … question by looking at a unique sample of German firms from 2000 to 2011. We follow their firm-bank relationships through times … of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance …

bank-firm CDS net notional and credit exposures we find that the probability of default for CDS firms drops when the effect …

bank-firm CDS net notional and credit exposures we find that the probability of default for firms with CDS traded on them …

and reduce the degree of credit rationing. In general, we find that a relationship with a bank that is more involved in … a firm's main bank aggravates these firm's credit rationing in crisis periods …

rationing. In general, we find that a relationship with a bank being more involved in securitization activities relaxes credit … credit rationing in normal periods, the issuance of MBS by a firm's main bank aggravates these firm's credit rationing in …