Physical climate risks can have a large regional impact, which can influence mortgage loans' credit risk and should be priced by the lenders. Motivated by the relevance of climate change for financial intermediaries, our paper aims at analysing if physical climate risks are being reflected in...

We show that the liquidation value of collateral depends on who is pledging it. We employ transaction-level data on overnight repurchase agreements (repo) and loan-level credit registry data on corporate loans. We find that borrowers on the repo market pay a 2.6 basis points rate premium when...

The 1996 Federal Trademark Dilution Act (FTDA) enhanced trademark protection and may thus influence trademark owners' borrowing ability. A difference-in-differences analysis based on the FTDA suggests that firms with more famous trademarks not only pay significantly lower interest rates, but...

We examine the effects of regulatory changes on banks' cost of capital and lending. Since the passage of the Dodd-Frank Act, the value-weighted CAPM cost of capital for banks has averaged 10.5 percent and declined by more than 4 percent on a within-firm basis relative to financial crisis...

We show that the liquidation value of collateral depends on who is pledging it. Using transaction-level data on all overnight repurchase agreements (repo) of 47 large European banks, we find that a loan collateralized by a sovereign bond carries a 3.0 bps rate premium if the borrower is of the...

Bank capital is an important determinant of secondary market liquidity of loans that a bank originates and syndicates. Higher bank capital is associated with significantly narrower loan bid-ask spreads. This effect is stronger when banks are subject to more external financing frictions and...

This paper documents novel empirical evidence on how financial stability matters to firms. I find that firms pay a higher price for loan commitments (i.e., credit lines) from safer banks. A one standard deviation increase in the cross-sectional mean of bank capital increases the commitment fees...

This paper studies a modern monetary economy: trade in both goods and securities relies on money provided by intermediaries. While money is valued for its liquidity, its creation requires costly leverage. Inflation, security prices and the transmission of monetary policy then depend on the...

This paper attempts to investigate the impact of credit information sharing on bank-specific stock price crash risk. Using a sample of 1,402 listed-banks in 55 countries for the period 2005-2013, we show that credit information sharing through public credit registries is negatively associated...

This paper examines the asset pricing implication of loan loss provisions (LLP). LLP is a bank's dominant accrual and a key determinant of informativeness of banks' financial reports. We find banks with low LLP have significantly higher returns than banks with high-LLP. A long-short investment...