In his basic model of debt renegotiation, BESTER [1994] argues that collateral is more effective if high risk projects … high probability of default, that makes collateral more effective. Instead it turns out that, given the expected return …, the probability of default has no impact on the collateral's effectiveness. Moreover, a higher risk of the project caused …

We explore the determinants of liquidation values of collateral, focusing on the potential buyers of assets. When a fi … and risk-shifting in loan contracts. Our contribution reveals that collateral does not necessarily solve for the asset …

It is argued that lending where the overwhelming criterion is the collateral rather than the repayment capability of …

particular for collateral that saves more on regulatory capital …

particular for collateral that saves more on regulatory capital …

supervisory dataset of syndicated loans from 2006-2012. Leveraging the unique information on covenant compliance, collateral and … public firms after violations. We find that collateral plays an important role in alleviating credit rationing for private … collateral values and tighter lending standards. We conclude that banks' use of the covenant channel disproportionately impacts …

This paper presents a new model for pricing OTC derivatives subject to collateralization. It allows for collateral … risk alone is not overly important in determining credit-related spreads. Only accounting for both collateral arrangement … collateral agreements on risk measurements. Our findings indicate that there are important interactions between market and credit …