We investigate the link between competition in credit markets and non-price loan terms, specifically financial covenants. We exploit regulation in the leveraged loan market as variation in banks' ability to offer covenant-lite loans. As regulated banks demand relatively more covenants, borrowers...

We investigate the effect of climate change, through natural disasters, on corporate borrowing costs. Using novel data, we construct granular measures of borrowers’ exposure to various natural disasters. We disentangle the effect of lenders updating their believes about the future severity and...

Government bureaus with higher percentages of furloughed employees during the 2013 government shutdown experienced more employee turnover for two years after the shutdown. This lost workforce was not replenished after employee exits stabilize, at least not within four years after the shutdown....

We investigate how corporate loan costs are affected by climate change-related natural disasters. We construct granular measures of borrowers’ exposure to natural disasters and then disentangle the direct effects of disasters from the effects of lenders updating their beliefs about the impact...

Banks price physical climate change-related risks after observing natural disasters linked to climate change. We isolate this updating process by identifying loans to borrowers at risk of, but not-directly affected by, climate-change related disasters. Loan spreads for these borrowers spike in...