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This paper investigates whether the securitization of corporate bank loans had an impact on the price of corporate debt. Our results suggest that loan facilities that are subsequently securitized are associated with a 15 basis point lower spread than that of loans that are not subsequently...
Persistent link: https://www.econbiz.de/10013128899
This paper investigates whether the securitization of corporate bank loans had an impact on the price of corporate debt. Our results suggest that loan facilities that are subsequently securitized are associated with a 15 basis point lower spread than that of loans that are not subsequently...
Persistent link: https://www.econbiz.de/10013129199
This paper investigates whether the securitization of corporate bank loans had an impact on the price of corporate debt. Our results suggest that loan facilities that are subsequently securitized are associated witha 15 basis point lower spread than that of loans that are not subsequently...
Persistent link: https://www.econbiz.de/10013132989
problems, the manager faces “disagreement costs,” represented by the difference between the firm's hurdle rate and shareholders …' expected return. The disagreement costs are increasing and convex in the likelihood of disagreement between existing and new …/existing shareholders on the one hand and the new shareholders on the other. This lowers disagreement costs and the capital budgeting hurdle …
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We examine how collateral affects the cost of debt capital. Theories based on borrower moral hazard and limited pledgeable income predict that collateral increases the availability of credit and reduces its price. Testing these theories is complicated by the very selection problem which they...
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