type of collateral that is comparable to the floating lien. We explore this natural experiment to identify how collateral …-in-differences approach, we find that following the change in the law and the loss in collateral value borrowers pay a higher interest rate on … credit by their bank. The reduction in collateral value also precedes a decrease in bank monitoring intensity and frequency …

We show that collateral plays an important role in the design of debt contracts, the provision of credit, and the … incentives of lenders to monitor borrowers. Using a unique dataset from a large bank containing timely assessments of collateral … collateral, spurring delinquency of borrowers on outstanding claims. We so explain why banks are senior lenders and quantify the …

An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit … incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are …

factors when they decide whether to grant loans: the relationship factor, the financial statement factor, and the collateral …/guarantee factor. We also find that smaller banks place greater emphasis on the relationship and the collateral/guarantee factors, and …

borrower collateral versus third-party guarantees. Among first-time borrowers, the introduction of mandatory information … sharing leads to a shift from collateral to guarantees, in particular for riskier borrowers. Among repeat borrowers, both … collateral and guarantee requirements decline in proportion to the length of the lending relationship. These results suggest that …