in absorbing liquidity risk originated from loan contract. We focus on the Australian syndicated loan market and the two … intensive loans, whilst revolving loans are liquidity intensive as they can be drawn-down at any time by the borrower. We find … evidence suggesting that Australian domestic banks are more willing to take liquidity risk. In particular, the proportion of …

We investigate two competing explanations for commercial bank distress during financial crises: liquidity shortages and … solvency concerns. If liquidity shortages cause distress, a lender of last resort can help by providing funds to banks having … trouble rolling over short-term debt and facing potential fire sales. However, if financial crises mainly reduce funding for …

We find some support for theories predicting that the presence of informed investors adversely affects liquidity: When … arrangers retain a share in the loan this impacts negatively liquidity. We find strong evidence that investor diversity is … beneficial to liquidity: Loans with larger syndicates; syndicates with higher investor turnover, more investor types, and lower …