how a loan’s collateral and covenants affect: 1) the difference between the loan’s credit rating and the senior, unsecured … loan’s credit spread. The results show that the rating agency and investors agree that a collateral requirement, a capital …This paper presents a new approach that quantifies how a credit rating agency and investors judge the effects of …

loan collateral and personal guarantees usage to enhance capital ratios. We use detailed information on the loan contracts … that personal guarantees usage increases more than that of collateral, especially at subsidiaries with lower capital ratios …

have despite this received scant attention in the credit-line literature. In this paper, I study the liquidity …

In this paper, we investigate the economy-wide effects of the collateral channel by exploiting: (i) a legal reform in … Sweden in 2004 that reduced collateral values, and (ii) a dataset that covers all incorporated firms in Sweden over the … period 2000-2006. We find that the loss in collateral value reduces both the amount and the maturity of firm debt and leads …

A unique legal reform in 2004 in Sweden redistributed collateral rights from banks holding floating liens to unsecured …, we document that a zero-sum redistribution of collateral rights and the resulting reduction in collateral capacity … these newly binding credit constraints firms simply shrink their operations. …

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

public firms after violations. We find that collateral plays an important role in alleviating credit rationing for private …We study the impact of covenant violations on credit access for privately-held and publicly-traded firms, using a rich … supervisory dataset of syndicated loans from 2006-2012. Leveraging the unique information on covenant compliance, collateral and …

covenants in facilitating the provision of credit. Since the Great Financial Crisis of 2008, the leveraged loan market has … witnessed unprecedented growth. CLOs play an increasingly central role in the provision of credit to corporations, holding as …

higher for borrowers who are requested to post collateral. Moreover, conditional on posting collateral, the cost of credit … in the event of default in the context of a competitive credit market characterized either by moral hazard (MH) or by … adverse selection (AS). In particular, we study how the level of such exemption affects the role of collateral depending on …