Download or read book Bank Loan Commitment Contracts written by Richard L. Shockley and published by . This book was released on 2014 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over 80% of all commercial bank lending to corporations in the U.S. is done via bank loan commitments. Yet we have little empirical knowledge of loan commitment contracts. In this paper we describe the rich contractual structure of bank loan commitments based on data pertaining to over 2,500 contracts. We then develop a model which demonstrates that the observed complex structure of bank loan commitment contracts (which typically include multiple fee structures, borrower-specific contracting variables, and the standard quot;material adverse change clausequot;) is important when the bank faces borrower adverse selection and moral hazard problems. Finally, we verify the robustness of our model by confronting its additional testable predictions with the data.

Download or read book Bank Loan Commitment Contracts written by Richard Lester Shockley and published by . This book was released on 1996 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Why the MAC Clause is So Ubiquitous in Bank Loan Commitments Although it is Hardly Ever Invoked written by Daniel Kraus and published by . This book was released on 2013 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many loan commitment contracts contain a material adverse change clause which allows banks to renege or step back from their commitment based on rather subjective claims regarding the borrowers' prospective financial situation. While this sounds like an attractive option for banks, empirical evidence shows that, despite its frequent appearance in contracts, the clause is rarely invoked (cf. Sufi, 2009; Ivashina and Scharfstein, 2010). In the present paper, we argue that this is due to the fact that, in combination with appropriate pricing on the spot loan market, the clause is essentially an effective means to screen the borrowers' riskiness. In particular, it renders loan commitment contracts comparably more expensive for high-risk borrowers, thereby directing them to the spot loan market. Low-risk borrowers, in turn, are still attracted to loan commitment contracts as for them the implicit extra cost is lower. Thus, in equilibrium, there is no need for banks to step back from earlier promises. Moreover, we show that the presence of the clause increases welfare as it decreases credit rationing for low-risk entrepreneurs and reduces total loan costs.

Download or read book Loan Commitments and Optimal Monetary Policy written by John V. Duca and published by . This book was released on 1988 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Information Revelation Lock In and Bank Loan Commitments written by Joel F. Houston and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper considers the extent to which loan commitments mitigate the problem of information monopolies that arise when the firm contracts with a private lender. Loan commitments in conjunction with short-term debt often provide the firm with superior investment incentives by influencing both the states in which bargaining occurs as well as the outcomes from bargaining. Commitment contracts are particularly valuable when there is a high likelihood that information about the firm will be publicly revealed ex post. We also identify circumstances under which the firm foregoes commitment financing, relying on short-term debt instead.

Download or read book Essays on Relationship oriented Bank Lending Arrangements written by Ozgur Emre Ergungor and published by . This book was released on 2000 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Structuring Commercial Loan Agreements written by Rodger Tighe and published by . This book was released on 1984 with total page 770 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Model of Complementary Loan Contracts and Participation Agreements written by and published by . This book was released on 1982 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Loan Documentation written by Anthony C. Gooch and published by Euromoney Publications. This book was released on 1991 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Principles of Construction Lending written by and published by Dearborn Real Estate. This book was released on 2002 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Documentation for Loans Assignments and Participations written by Anthony C. Gooch and published by Euromoney Books. This book was released on 1996 with total page 406 pages. Available in PDF, EPUB and Kindle. Book excerpt: This revised edition has updated its predecessor, with new features such as: a review of loan concepts and terminology and discussion of the standards for asset sales. It also includes a detailed dissection of participation and assignment agreements.

Download or read book Loan Agreement written by World Bank and published by . This book was released on 1968 with total page 494 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Structuring Commercial Loan Agreements written by Sandra Schnitzer Stern and published by . This book was released on 1990 with total page 1450 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Loan Commitments and Bank Risk Exposure written by Robert B. Avery and published by . This book was released on 1990 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Loan Agreement Documentation written by Anthony C. Gooch and published by . This book was released on 1986 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: Sample annotated loan agreement for syndicated Eurodollar transaction.

Download or read book The LSTA s Complete Credit Agreement Guide written by Richard Wight and published by McGraw Hill Professional. This book was released on 2009-01-18 with total page 669 pages. Available in PDF, EPUB and Kindle. Book excerpt: Loans between institutions continue to be issued and traded, and corporate lending remains a booming practice. At the core of these activities is the credit agreement--a complicated document that often acts as an obstacle even to the professionals and support personnel who work with it every day. From determining the terms of the agreement to managing defaults, assignments, and competitive bids, this comprehensive reference tool unlocks the heart and soul of the loan market for institutional investors and professionals in financial and corporate lending firms. Operations personnel who are responsible for executing and managing credit agreements will find it invaluable. The LSTA's Complete Credit Agreement Guide goes far beyond the fundamentals to provide: Unmatched coverage on the nuts and bolts of the credit agreement In-depth discussions that include all the nuances of today's global marketplace Insightful explanations that address how to manage situations that go off course With The LSTA's Complete Credit Agreement Guide, all the answers are at your fingertips. Sponsored by the Loan Syndications and Trading Association (LSTA) and written by the partners at Milbank, Tweed, Hadley & McCloy, it provides a definitive road map to managing the entire credit agreement process.

Download or read book Loan Documentation written by Alexandra M. Peters and published by . This book was released on 2005 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: