value of assets. The costs vary from 14.7% for bond renegotiations to 30.5% for bankruptcies, and are substantially higher …

This paper studies the effects of making corporate sector assets eligible as collateral for central bank borrowing …. Banks are willing to pay collateral premia on assets if they become eligible as collateral. Collateral premia make debt … collateral supply, firm responses also have a negative effect: higher debt issuance makes corporate bonds riskier in future …

Studies indicate that a consistent rise in insolvency risk should be addressed at the strategic level. Vigilant boards … can use leverage maturity structure as a tool to control insolvency risk. However, according to the information asymmetry … theory, leverage acquisition is subject to the presence of fixed assets which can be used as collateral. The current study …

different types of collateral. We find that securing a loan reduces borrowing costs for firms by 17 basis points. The price …Researchers' attempts to identify the valuation of collateral has been hampered by data limitations. We overcome this … effect varies across different types of collateral, with marketable securities and real estate being the most valuable types …