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Persistent link: https://www.econbiz.de/10011280246
We investigate how the introduction of market-based pricing, the practice of tying loan interest rates to credit default swaps, has affected bank financing. We find that market-based pricing is associated with lower interest rates, both at origination and during the life of the loan. Our results...
Persistent link: https://www.econbiz.de/10010250693
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We directly measure banks' monitoring of syndicated loans. Banks typically demand borrower information on at least a monthly basis. About 20% of loans involve active monitoring (i.e., site visits or third-party appraisals). Monitoring increases with the lead bank's incentives and the value of...
Persistent link: https://www.econbiz.de/10012855197
Persistent link: https://www.econbiz.de/10012693678
We investigate how the introduction of market-based pricing, the practice of tying loan interest rates to credit default swaps, has affected borrowing costs. We find that CDS-based loans are associated with lower interest rates, both at origination and during the life of the loan. Our results...
Persistent link: https://www.econbiz.de/10014352386