We study whether and how corporate loan securitization through collateralized loan obligations (CLOs) has changed the nature of bank lending relationship. We use a large dataset of CLO collaterals to identify securitized loans and the relationship lenders. We show that even if a relationship...

Using a large sample of collateralized loan obligation (CLO) portfolios, we examine the role of borrowers’ information quality in corporate loan securitization. We find that all else equal, CLO managers prefer loans from firms with high information quality. This effect is stronger when...

Using a large sample of collateralized loan obligation (CLO) portfolios, we examine the role of borrowers' accounting quality in corporate loan securitization. We find that loans from companies with higher ex-ante accounting quality are more likely to be purchased and securitized by CLOs....

Using the Troubled Asset Relief Program (TARP) as a laboratory, this paper examines the impacts of bank bailouts on bank-dependent clients. We find that large TARP recipient banks reduce credit supply to dependent borrowers in the post-TARP period. Such effect is more pronounced when recipient...