We study third-party loan guarantees in a model in which lenders can screen, learn loan quality over time and can sell loans before maturity when in need of liquidity. Loan guarantees improve market liquidity and reduce lending standards, with a positive overall welfare effect. Guarantees...

We develop a novel technique to extract credit-relevant information from the text of quarterly earnings calls. This information is not spanned by fundamental or market variables and forecasts future credit spread changes. One reason for such forecastability is that our text-based measure...

The aim of this paper is to investigate whether the market structure and new technology have an impact on bank loan markets in the European Union. The impact of new technology on three types of bank loans (residential mortgage loans, consumer loans, and corporate loans) is quantified separately...

We investigate the impact of Environmental, Social, and Governance (ESG) ratings on borrower-lender matching and the consequences of this matching for syndicated loan contracts. We find that firms with high ESG scores are more likely to borrow from banks likewise with high ESG and that this...

Secured and unsecured credit composition differently affects the business cycle. US credit accounts are decomposed considering secured and unsecured contracts for businesses and households and their sample correlations with real activity compared to the conditional evidence from an estimated...

What happens to personal credit interest rates banks charge when a credit union operates in a location? We gather a unique dataset from the Brazilian Central Bank containing 370,383 location-month observations from 6,225 distinct locations and estimate dynamic panels of determinants of bank...