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The impact of U.S. bank loan announcements on the stock prices of the corporate borrowers has been decreasing during …
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We study a unique experiment to examine the importance of rating agencies' private information for bank shareholders …. On July 20, 2011, Fitch Ratings refined their bank standalone ratings, which measure intrinsic financial strength, from a … standalone rating refinement was cleanly limited to bank shareholders. We find evidence suggesting that the refinement resulted …
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Can banks trade credit default swaps (CDSs) referenced on their current corporate clients at competitive prices, or are banks penalized for potentially holding private information? To answer this question we merge CDS trades reported under the European Market Infrastructure Regulation (EMIR)...
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bank loans to U.S. firms over the period of 1980-2003. We find that investors react positively to such announcements if the …'s headquarters state. Investor reaction is, in fact, the largest when the bank is foreign. Our evidence suggest that investors value … bank identities and reputation seem to matter a great deal …
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