This paper examines the informational efficiency of loans relative to bonds surrounding loan default dates and bond default dates. We examine this issue using a unique dataset of daily secondary market prices of loans over the11/1999-06/2002 period.(...)

This paper examines the price reaction of loans relative to bonds prior to and surrounding information intensive events, such as corporate (loan and bond) defaults, and bankruptcies using a unique dataset of daily secondary market prices of loans. Specifically, we find that risk-adjusted loan...

This paper examines recent evidence on the characteristics and pricing of debt securities underwritten by Section 20 subsidiaries of U.S. commercial bank holding companies relative to those underwritten by investment houses. Our results show that Section 20 underwritings of lower-credit rated...

Commercial banks have been a relatively recent entrant into the corporate securities underwriting market as a result of certain relaxations of the Glass-Steagall Act (especially Section 20 of the Act). The Congress and the academia have been debating the benefits and costs of allowing commercial...

When a borrowing firm's existing loans trade for the first time in the secondary loan market, it elicits a significant positive stock price response by the borrowing firm's equity investors. We show that underlying this response is the impact of loan sales in alleviating a borrowing firm's...

Commercial banks have been a relatively recent entrant into the corporate securities underwriting market as a result of certain relaxations of the Glass-Steagall Act (especially Section 20 of the Act). The Congress and the academia have been debating the benefits and costs of allowing commercial...