When a firm’s loans are first traded in the secondary market, private information about the firm is disclosed to a select group of large investors, so called “Qualified Institutional Buyers” (QIBs). We document a significant information effect that benefits these buyers in the firm’s...

This paper uses a new data set of daily secondary market prices of loans to analyze the specialness of banks as monitors. Consistent with a monitoring advantage of loans over bonds, we find the secondary loan market to be informationally more efficient than the secondary bond market prior to a...

We examine the effects of bank M&As on small business lending using data on over 6,000 recent U.S. bank M&As. We are the first to decompose the impact of M&As into static effects from simply melding the antecedent institutions, and dynamic effects associated with post-M&A refocusing of the...

This is the first exploratory field study of the U.S. inter-dealer OTC corporate bond market. We do this by analyzing the trades of a major bond dealer and through interviews with personnel at the trading desk of this dealer. We document the competitive structure of the market in terms of the...

This study investigates a 100-year history of the asset-risk and capital structure choices of the publicly-traded banks located in the UK, Canada and US. These three countries were chosen because their diverse regulatory and banking structures, while sharing common legal and cultural...