We study the determinants of local governments' reliance on bank loans using granular data from the Federal Reserve. Governments that are larger, rely on stable revenue sources, or have higher spending relative to revenues are more likely to borrow from banks. About a third of governments in the...

Using confidential loan-level data, we investigate the importance of bank loans in the debt structure of U.S. state and local governments. We show that most bank debt is closely substitutable with municipal bonds and that smaller, lower-income and less credit-worthy borrowers are more reliant on...

U.S state and local governments are increasingly turning to bank financing amid deteriorating fiscal positions. We document that the maturity and collateral structure of municipal bank loans allows borrowers additional debt capacity by diluting outstanding long-term bonds. Specifically, most...

We study the determinants of local governments' reliance on bank loans using granular data from the Federal Reserve. Governments that are larger, riskier, rely on historically stable revenue sources, or have higher spending relative to revenues are more likely to borrow from banks. Declines in...

We study the determinants of local governments' reliance on bank loans using granular data from the Federal Reserve. Governments that are larger, rely on stable revenue sources, or have higher spending relative to revenues are more likely to borrow from banks. About a third of governments in the...

The authors discuss the role of private debt in financial crises and attempt to apply the debt deflation logic to the data and facts surrounding the post bail-in years in Cyprus. It is found that the financial crisis in Cyprus was indeed predictable and that a key problem facing the country...

We provide direct evidence of selective default on government debt when creditors can be identified. Using unique loan-level data, we find that local governments in China choose to default on banks that have weaker political power, as those banks have little influence over local politicians'...

Despite its large and increasing size in the U.S. and Europe, there is relatively little research on the private debt (PD) market, particularly compared to the bank and syndicated loan markets. Accordingly, in this paper, we survey U.S. and European investors with private debt assets under...

Almost 95% of long-term municipal bonds have callable features, and despite low interest rates, we find that a substantial fraction of local governments exercise these options with significant delays. Using data from 2001 to 2018, we estimate that U.S. municipals lost over $31 billion from...