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Syndicated Loan Spreads and the Composition of the Syndicate

Lim, Jongha - 2012

The past decade has seen significant changes in the structure of the corporate lending market, with non-bank institutional investors playing larger roles than they historically have played. These non-bank institutional lenders typically have higher required rates of return than banks, but invest...

Persistent link: https://www.econbiz.de/10013100992

Conditional Effects of Covenants on Loan Pricing

Wang, Lulu - 2013

I explore a sample of private bank loan agreements collected from LPC Dealscan and empirically test the marginal effect of covenants inclusion on loan spread, conditioning on the extent of information asymmetry between the firms and the lead banks. I apply two measures of covenants inclusion,...

Persistent link: https://www.econbiz.de/10013085112

Competitive structure and bank loan rate in Pakistan's banking industry

Khan, Amir Jahan - In: The Pakistan development review : PDR 59 (2020) 3, pp. 377-398

Persistent link: https://www.econbiz.de/10013093160

Loan Spreads and Unexpected Earnings

Yu, Jeff Jiewei - 2013

This paper provides a more direct test of the superior information hypothesis of banks and informs a long standing policy debate about whether banks serve a special information role in the economy. I circumvent the self-selection bias that contaminated prior studies by obtaining bank loan...

Persistent link: https://www.econbiz.de/10013075262

Fair Microfinance Loan Rates

Jarrow, Robert A. - 2018

This paper uses a reduced form credit risk model to determine fair lending rates for micro-finance loans. A fair …

Persistent link: https://www.econbiz.de/10012927076

Firm Trustworthiness and Bank Loan Pricing

Chan, Konan - 2020

. Collectively, our results suggest that perceived firm trustworthiness from the stakeholders conveys valuable credit quality …

Persistent link: https://www.econbiz.de/10012841942

Lending Relationships and the Pricing of Syndicated Loans

Zhang, Donghang - 2020

Using a new dataset on syndicated loan primary market pricing adjustments, we examine whether relationship banks' information advantage facilitates price discovery in loan issuances. We find that the lead bank makes fewer adjustments to the initial pricing terms of a syndicated loan and shortens...

Persistent link: https://www.econbiz.de/10012844132

Assessing the Quality of Bank Loan Ratings

Gopalan, Radhakrishnan - 2019

information asymmetry. We also find that bank loan ratings are less responsive to changes in underlying credit conditions for …' credit ratings. Our study cautions against this practice …

Persistent link: https://www.econbiz.de/10012903168

Borrowing Beyond Borders : Foreign Assets, Lender Choice, and Loan Pricing in the Syndicated Bank Loan Market

Houston, Joel F. - 2019

This paper examines the ability of firms to overcome cross-country borrowing barriers through foreign asset connections. We find that firm-level foreign assets are an important mechanism in reducing the boundary between borrowers and lenders and thereby enhancing capital access in the syndicated...

Persistent link: https://www.econbiz.de/10012904908

Information Asymmetry, Line of Credit and Term Loan Pricing

Agarwal, Charu - 2019

The information asymmetry between the borrower and the lender is a well-studied issue in the credit contracts. Various … mechanisms (credit rationing, short-term debt, relationship banking, collateralization) have been discussed in the literature to … reduce the asymmetry. This paper examines the role of credit line in reducing the information asymmetry through better risk …

Persistent link: https://www.econbiz.de/10012892749