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Mark-to-Market, Loan Retention, and Loan Origination

Bleck, Alexander - 2017

We study the effects of mark-to-market accounting (MTM) on banks' loan origination and retention decisions. We point out a conceptual shortcoming of MTM. Loan prices are informative in equilibrium but this price discovery is sustained by the good banks' costly retention. The attempt to exploit...

Persistent link: https://www.econbiz.de/10012976768

Loss Given Default for Commercial Loans at Failed Banks

Shibut, Lynn - 2016

This paper extends what we know about loss given default (LGD) on commercial loans by studying certain types of these loans that have been excluded from previous research but that may be more representative of loans held by small and mid-sized banks. We use a newly available dataset on...

Persistent link: https://www.econbiz.de/10013002186

Banks' Exposure to Rollover Risk and the Maturity of Corporate Loans

Paligorova, Teodora - 2016

In this paper, we show that when banks increase their use of wholesale funding they shorten the maturity of loans to corporations. This effect appears to be linked to banks' exposure to rollover risk resulting from their increasing use of short-term uninsured funding. Banks that use more...

Persistent link: https://www.econbiz.de/10013006666

Intervention of Regulatory Bailouts in Loan Partnerships : Evidence of Tarp's Effect on Syndicated Loan Structures

Enkhtaivan, Bolortuya - 2015

loan syndicates. While the purpose of TARP was to stimulate the flow of credit during the economic downturn, the low cost … of capital could have functioned as a double-edged sword by imprudently increasing lenders' credit risk-appetite. Our … documenting a greater share of lead arranger commitment during a period of time when credit monitoring was strengthened …

Persistent link: https://www.econbiz.de/10013012954

The Impact of Organizational Downsizing on Loan Officer Specialization and Credit Defaults

Goedde-Menke, Michael - 2020

This paper studies how organizational downsizing in a bank affects loan officer specialization and the credit default …

Persistent link: https://www.econbiz.de/10012851014

Bank Loan Renegotiation and Credit Default Swaps

Clark, Brian J. - 2020

Using Roberts (2015) loan-level data from 2000 to 2011, we find that the inception of CDS trading on reference firms' debt is associated with a decreased number and lower probability of amendments, restatements, and rollovers to existing lenders of bank loans. Reference firms are also less...

Persistent link: https://www.econbiz.de/10012853623

Procyclical Leverage : Evidence from Banks' Lending and Financing Decisions

Dursun-de Neef, H. Özlem - 2020

Middle-aged people have a higher demand for bank loans compared to other age groups and banks that are active in regions with more middle-aged residents are exposed to higher loan demand. This generates a geographically varying demand for loans. Using this variation, we show that banks increase...

Persistent link: https://www.econbiz.de/10012855645

Credit Default Swaps and Lender Incentives in Renegotiations of Bank Debt

Chakraborty, Indraneel - 2020

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

Persistent link: https://www.econbiz.de/10012856395

Using Loan Loss Indicators by Loan Type to Sharpen the Evaluation of Banks’ Loan Loss Accruals

Bhat, Gauri - 2020

Prior research acknowledges that the determinants, timeliness, and economic implications of banks' provisions for loan losses (PLL) vary across loan types. However, the lack of machine-readable data on PLL by loan type has precluded researchers from incorporating loan type into the evaluation of...

Persistent link: https://www.econbiz.de/10012856539

The Syndicate Structure of Securitized Corporate Loans

Guo, Zhengfeng - 2019

-securitized loans. The result can largely be explained by their degree of information asymmetry and credit risk. We find that lead banks …

Persistent link: https://www.econbiz.de/10012860116