securitizing collateral through Special Purpose Vehicles (SPVs) and test how collateral values impact corporate risk management … with exposure to these risks and that rely on SPVs. Supporting the collateral constraints literature, the effect is weaker … for firms that likely need the collateral for external financing, such as financially constrained firms. Our findings …

’ borrowing capacity using capital as collateral. I propose a model in which stronger constraints can further decrease the real …