Showing 1 - 10 of 1,102
If the creditworthiness of a counterparty is a derivative of a commodity price, there is the potential to have right- or wrong-way exposures in respective commodity transaction. Identifying them is important, because otherwise credit costs might be inadequately calculated and wrong incentives...
Persistent link: https://www.econbiz.de/10013061102
In case of multiple source lending even solvent firms may be forced into bankruptcy due to uncoordinated credit withdrawals of their lenders. This paper analyzes whether a debtor firm can thwart such inefficient liquidations by offering creditors the option to delay their foreclosure decision...
Persistent link: https://www.econbiz.de/10010301793
Traditional methods for evaluating corporate credit risk rarely consider the impact of the macro economy on corporate value and performance. We argue that lenders and management can obtain valuable information about the need for and approach to restructuring by decomposing default predictions...
Persistent link: https://www.econbiz.de/10010320364
growth potential have troubles to raise newfunds. However, offerings are frequently accompanied by generous debt …-concessionsby lending banks, which suggests that firms are able to overcome a debt-overhangin private bargains.[...] …
Persistent link: https://www.econbiz.de/10005869355
In this study we empirically investigate the effect of financial distress on cor-porate ownership and control. Our analysis is based on a panel of 267 Germanfirms that suffered from repeated interest coverage shortfalls and steep share pricedeclines between 1996 and 2004. We track each firm's...
Persistent link: https://www.econbiz.de/10005869365
Credit risk measurement and management become more important in all financial institutions in the light of the current financial crisis and the global recession. This particularly applies to most of the complex structured financing forms whose risk cannot be quantified with com-mon rating...
Persistent link: https://www.econbiz.de/10003939552
Persistent link: https://www.econbiz.de/10003873808
During the last years the lending business has come under considerable competitive pressure and bank managers often express concern regarding its profitability vis-a-vis other activities. This paper tries to empirically identify factors that are able to explain the financial performance of bank...
Persistent link: https://www.econbiz.de/10009768846
We studied information and interaction processes in six lending relationships between a universal bank and medium sized firms. The study is based on the credit files of the respective firms. If no problems occur in these lending relationships, bank monitoring is based mainly on cheap,...
Persistent link: https://www.econbiz.de/10009768853
Following the extra ordinary decision to bail in the unsecured depositors and restructure the two main banks and the near complete destruction of the country’s economic business model as an International Financial Centre, the author considers the changes necessary to rebuild the economy of...
Persistent link: https://www.econbiz.de/10009745997