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 … that the same dealer offers to banks and to other investors. We find that banks lending to a corporation purchase CDSs on …

We test whether bank loans change public bond yields. A 10% increase in bank debt raises bond yields by 15bps …, reflecting a trade-off between the benefits of bank cross-monitoring and higher bond risk. This effect is smaller for firms with … no CDS and junk debt, where bank monitoring is most valuable. It is unlikely that firms with bank debt are riskier …

In this study, we use bank loan information to construct proxies for corporate transparency and examine whether these … bank loans of all publicly listed firms on the Shenzhen Stock Exchange, covering January 2008 to June 2013. We find that … asymmetry in the stock market is more pronounced when these loans are borrowed from joint-equity commercial banks or multiple …