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) and employing logit regression method, we provide evidence of the pandemic-induced exposure to default risk in the … marketplace lending market. Our analysis indicates that the probability of default increases from 0.056 in the pre-pandemic period … to 0.079 in the post-pandemic period. COVID-19 pandemic has a significant impact on default risk during May and June of …
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This paper presents evidence that personal relationships between corporate borrowers and bank loan officers improve the outcomes of loan renegotiation. Analysing a bank reorganization in Greece in the mid-2010s, I find that firms that experience an exogenous interruption in their loan officer...
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We analyze the role of debt in persuading an entrepreneur to pay out cash flows, rather than to divert them. In the first part of the paper we study the optimal debt contract -- specifically, the trade-off between the size of the loan and the repayment -- under the assumption that some debt...
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manufacturer to increase the cash collected from car sales via a credit fire sale: reducing loan-to-value in the intensive margin …% to generate the same liquidity of a credit fire sale …
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