This paper studies whether credit ratings can alleviate the hold-up problem between small opaque firms and informed … expensive bank credit, especially from new and less informed lenders. Consequently, they rely less on the informationally … powerful lender and invest more. We conclude that credit ratings reduce the informational gap between lenders and erode the …

We document a major mechanism – inorganic growth – which drives a wedge between micro-study effects of credit supply … shocks and aggregate effects. Exploiting a quasi-exogenous positive shock to credit supply, we document that affected firms …, and the quality of the credit-supply-induced acquisition activity is low. The market for inorganic growth is large …

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

to obtain various kinds of credit certificates. As P2P markets continue to develop, it is plausible that certification … surprisingly, loans with more credit certificates experience a higher rate of delinquency and default. However, lenders remain … reduced investment inefficiency. Overall, we document a setting where credit certificates fail to serve as an accurate signal …

Productive firms can access credit markets directly by issuing corporate bonds or by borrowing through financial … intermediaries. In this paper, we study the cyclical properties of corporate credit provision through these two types of debt … instruments in major advanced economies. We argue that the cyclicality of corporate credit is closely related to the cyclicality …

which requires the estimation of a Current Expected Credit Loss (ASC 326) which replaces the older well … the elasticity method is an important reason for applying economic elasticity analysis to the task of estimating credit …

Estimating expected credit losses on banks' portfolios is difficult. The issue has become of increasing interest to …-year-ahead expected rate of credit losses (ExpectedRCL) that combines various measures of credit risk disclosed by banks. It uses cross …-sectional analyses to obtain coefficients for estimating each period's measure of expected credit losses. ExpectedRCL substantially …

Estimating expected credit losses on banks' portfolios has long been difficult. The issue has become of increasing … develops a measure of the one-year-ahead expected rate of credit losses (ExpectedRCL) that combines various measures of credit … of expected credit losses. ExpectedRCL performs substantially better than net charge-offs in predicting one …