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In 2002 and 2003, many Chinese banks implemented reforms that delegated authority to individual loan officers. The change followed China's entrance into the WTO and offers a plausibly exogenous shock to loan officer incentives to produce information. We find that the bank's internal risk rating...
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We offer a new explanation of loan syndicate structure based on banks' comparative advantage in managing systematic liquidity risk. When a syndicated loan to a rated borrower has systematic liquidity risk, the fraction of passive participant lenders that are banks is about 8% higher than for...
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"We offer a new explanation of loan syndicate structure based on banks' comparative advantage in managing systematic liquidity risk. When a syndicated loan to a rated borrower has systematic liquidity risk, the fraction of passive participant lenders that are banks is about 8% higher than for...
Persistent link: https://www.econbiz.de/10003729140
The recent growth of credit derivatives has been explosive. The global credit derivatives market grew in notional value … increased liquidity in credit indices and index tranches, as well as the proliferation of exotic instruments such as forward … to replace it, however, are divided. Both the top-down and bottom-up approaches for describing the dynamics of credit …
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