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Leveraged loans: is high leverage risk priced in?

Newton, David P.; Ongena, Steven; Xie, Ru; Zhao, Binru - 2020

We investigate the impact of the 2014 Interagency Clarification on the leverage risk premium for bank- and nonbank-originated loans. Using a novel dataset from 2011 to 2019, we show that leveraged loan spreads have declined rapidly for nonbank facilities relative to bank facilities since the...

Persistent link: https://www.econbiz.de/10012420989

Uncertainty and the cost of bank vs. bond finance

Grimme, Christian - 2019

How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending rates. This finding can be explained with a model that...

Persistent link: https://www.econbiz.de/10011958806

Optimal Lending Contract with Uncertainty Shocks

Villacorta, Alonso - 2014

behavior. A line of credit appears in the optimal long term contract similar to (DeMarzo and Fishman, 2007). The novelty of the … contract is that the credit limit varies over time, as a function of the state of volatility. Credit limit does not vary … monotonically over firms. When uncertainty increases, credit limits are reduced for highly constraint firms, because the frictions …

Persistent link: https://www.econbiz.de/10013060348

Are Banks' Internal Risk Parameters Consistent? Evidence from Syndicated Loans

Firestone, Simon - 2014

parameters affect bank credit supply …

Persistent link: https://www.econbiz.de/10013065553

Are Banks' Internal Risk Parameters Consistent? Evidence from Syndicated Loans

Firestone, Simon - 2014

This paper examines consistency in the estimates of probability of default (PD) and loss given default (LGD) that nine large U.S. banks assign to syndicated loans for regulatory capital purposes. Using internal bank data on loans that had PDs and LGDs assigned by more than one bank, we find...

Persistent link: https://www.econbiz.de/10013061902

Economic Policy Uncertainty and Banks’ Loan Pricing

Ashraf, Badar Nadeem - 2019

Using news-based government economic policy uncertainty (EPU) index of Baker et al. (2016) and bank-level data from 17 countries over the period 1998-2012, we find that government economic policy uncertainty has significant positive association with interest rates on bank gross loans....

Persistent link: https://www.econbiz.de/10012859755

Flooded credit markets : physical climate risk and small business lending

Barbaglia, Luca; Fatica, Serena; Rho, Caterina - 2023

on their loans than non-disaster firms. Floods reduce securitised credit in the local markets, suggesting that physical …

Persistent link: https://www.econbiz.de/10014465205

Trade uncertainty and U.S. bank lending

Correa, Ricardo; Di Giovanni, Julian; Goldberg, Linda S.; … - 2024

This paper uses U.S. credit register data and the 2018-19 Trade War to study the effects of uncertainty on domestic … credit supply. Exploiting differences in banks' ex-ante exposure to trade uncertainty, we find that increased uncertainty is …

Persistent link: https://www.econbiz.de/10015080984

Banks, debts and workers

Denk, Oliver; Fialho, Priscilla - 2020

measures that aim to avoid credit overexpansion are two policies that can improve the links of private debt with labour income …

Persistent link: https://www.econbiz.de/10012421215

Konzentrationsrisiken in Kreditportfolios

Winterfeldt, Birker - 2008

Persistent link: https://www.econbiz.de/10014009601