under previously committed credit lines. We show that during the collapse of the Asset Backed Commercial Paper market in the … conditions on the outstanding credit lines offered to borrowers in violation of a covenant. Looking at the broader period of the …, following a covenant violation on a credit line. Our paper suggests that a worsening in financial conditions of lenders can bear …

We analyze how Credit Default Swaps (CDS) affect bank incentives and borrower outcomes in renegotiations after covenant …

We study how the consequences of violations of covenants associated with bank lines of credit to firms vary with the … financial health of lenders. Following a violation banks restrict usage of lines of credit by raising spreads, shortening … during the recent crisis. Banks in worse financial health are more likely to restrict access to credit lines following a …

these firms' future financial performance? (2) Does this predictability vary across different stages of the credit cycle … relationship is primarily present in the expansionary stages of the credit cycle. This suggests that a firm's current bank lender … applicants. The finding that this primarily occurs in credit cycle expansions is consistent with theory models that predict that …

. The credit-enhancement channel predicts a positive relation between banks' CDS selling and loan sales. Using syndicated … substitute channel, and the credit-enhancement channel plays an important role in bank loan sales …