empirical relation between collateral and loan risk. We posit that certain economic characteristics of collateral may be … associated with the empirical dominance of different risk-collateral channels implied by economic theory, namely the “lender … predictions regarding the empirical relations between collateral and loan risk. For our sample of commercial loans, we find that …

Collateral is a widely used, but not well understood, debt contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant, although the ex ante theories are also valid for customers with …

relation between loan risk and collateral. Specifically, we posit that different economic characteristics or types of … collateral pledges may be associated with the empirical dominance of the four different risk-collateral channels implied by … economic theory. For our sample, collateral overall is associated with lower loan risk premiums and a higher probability of ex …

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant although the ex ante theories are also valid for customers with …

increase expected recovery rates on collateral. Using unique data that provides ex-ante appraised liquidation values on secured … that movable collateral, which is less redeployable, susceptible to agency problems, and faster to depreciate, exhibits …

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant although the ex ante theories are also valid for customers with …