Download or read book Essays on Credit Risk of Syndicated Loans written by Jianglin Ding and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book ESSAYS ON THE SYNDICATED LOAN MARKET written by Yibo Xiao and published by . This book was released on 2009 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt: The syndicated loan is become more and more important for firm's financing. We study three important aspects of loan syndication: the lead arranger's reputation effect on syndicated loan pricing, the switching behavior for repeat syndicate loans and the effect of country-specific bank-firm ownership structure on syndicated loan pricing and bank-firm relationship of repeat loans. The first chapter analyzes the reputation effect of the lead arranger on syndicated loan pricing, based on a sample of loan facilities to non-financial U.S. firms over the 1994-2006 period. Theory suggests that the reputation/spread relationship should generally be positive because more reputable lenders usually employ more costly loan screening and monitoring techniques and therefore must be compensated with a higher spread. After controlling for endogeneity in lender-borrower matching, the empirical results show that the reputable arrangers charge a "reputation premium" for monitoring and due diligence, and the commitment against extracting the information rent from borrowers. The results also show that the less-reputable arrangers offer a "reputation discount", since the market competition from both the loan market and bond market makes it more difficult for less reputable arrangers to sustain the reputation mechanism. In addition, the reputation effect on pricing becomes less significant when the borrower enters a repeat loan relationship with a prior or existing lender. Finally, the study finds that the arranger's reputation can reduce the lead share retained by the lead arranger in its loan portfolio, which serves as evidence that reputation also mitigates the information asymmetry between the lead arranger and participant banks. The second chapter analyzes the switching behavior for two types of repeat loans: migrating loans that remain within the same bank reputation class and loans migrating to a different reputation class. The theoretical literature argues that banks (lenders) and firms (borrowers) benefit from entering into a relationship-lending arrangement. In the syndicated loan market, however, it is very common for repeat loans to switch from one bank to another. We present a model that establishes conditions for implementing empirical investigations relating to relationship lending and the characteristics of the separating equilibrium in the loan market. Using explanatory variables describing firms, loans, and loan syndicates, we find that lending within the high quality bank sector reveals evidence that is consistent with relationship lending. That is, some firms forego longer maturity loans and less oversight to remain with their original lender. A similar finding does not hold for repeat lending in the lower quality bank sector. Regarding loans that migrate in either direction between the high and low quality banking sectors, firm risk is the most important determinant. Relatively riskier firms move down to lower quality lenders while relatively safer firms move up to higher quality lenders. The third chapter investigates the determinants of loan pricing and repeat loan relationship for a sample of 6,180 non-U.S.. firm-loan observations for the period 1998-2007. This paper focuses on the relation between a country-specific governance indicator and country-specific bank-firm ownership structures on loan pricing and the management of a lending relationship between the syndicate bank and firm. We evaluate the relationship between country-specific bank ownership structure and the main characteristics of loan, which are mainly measured by loan pricing and loan switching decision. The paper examines three interrelated questions: 1.How is loan pricing affected by country-specific bank-firm ownership structure? 2. Does country-specific bank-firm ownership structure influence the decision to switch lenders in the repeat loan market? 3. Is country-specific bank-firm ownership structure more important for a borrower to migrate to a higher reputation lender than to a lower reputation lender? We use loan-characteristic, bank-characteristic, and firm-characteristic variables as well as country-specific corruption and country-specific bank-firm ownership structure variables to explore the effect on loan pricing and loan-switching decisions. Using logistic regression analysis, we find that loan switching is less likely for firms when the bank controls the firm, especially in the case of a bank-controlled firm borrows from a low reputation syndicated loan lender. However, when the firm controls a local bank, there is no impact on the firm's switching decision in the syndicated loan market. The bank-controlling firm is as likely to switch as a firm that does not control a bank even though the firm is more opaque to the financial market. Our results suggest that in the international syndicated loan market, the bank-firm relationship is partly shaped by country-specific characteristics and information asymmetry of firms to the financial market. These chapters explores the bank and firm behavior in the syndicated loan market and make the contribution to the literature by offering further knowledge and deeper understanding about the bank-firm relationship and behavior in the loan syndication structure.

Download or read book Syndicated Loans written by Y. Altunbas and published by Springer. This book was released on 2006-05-05 with total page 277 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the development of the international syndicated credits market over the past three decades. Bringing together views of practitioners and academics it provides original answers to unexplored research questions. With extensive coverage and thought-provoking insights, the book is of value to students, practitioners and academics.

Download or read book Essays on Credit Frictions Debt Choice and the Business Cycle written by Julian Karl Douglas Wright and published by . This book was released on 1995 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Credit Risk written by and published by . This book was released on 2007 with total page 291 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Credit Risk Banking and Financial Regulation written by Janko Cizel and published by . This book was released on 2016 with total page 207 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Credit Risk written by Yongjun Tang and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Credit Risk written by Jin Liu and published by . This book was released on 2004 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays in Credit Risk written by Leandro Saita and published by . This book was released on 2006 with total page 137 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays in the Theory of Credit Risk written by Clemens Mueller and published by . This book was released on 2000 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Credit Risk written by Ping Zhou and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Credit Risk with Special Focus on the Subprime Financial Crisis written by Bastian Breitenfellner and published by . This book was released on 2012 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Syndicated Loan Market written by and published by . This book was released on 2015 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Two Essays On Covenant Lite Loans written by Boli Yi and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In syndicated loan markets, one striking development is the exclusion of financial maintenance covenants in leveraged loans, called covenant-lite loans. The first essay of the dissertation explores managerial incentives to choose a covenant-lite loan. I find managerial opportunism incentives significantly dominate managerial flexibility incentives in borrowing covenant-lite loans, suggesting that stronger executive power base being more likely to borrower-friendly loan contracts. Furthermore, in taking this borrower-friendly loan type, lenders get compensated by setting higher loan spread and tighter loan strictness to covenant-lite loan borrowers when the loan is taken to build up flexibility in management to deal with firm-specific uncertainty (organizational discretion). Stock market is also sensitive to organizational discretion in a negative way. The second essay of the dissertation assesses whether dual ownership offers ongoing monitoring to covenant-lite loan borrowers' credit worthiness. A dual owner owns both the stock and a portion of the loan from a borrower and the enhanced monitoring hypothesis suggests these dual owners may monitor the firms in lieu of financial maintenance covenants. I find covenant-lite loan borrowers with dual ownership exhibit lower default risk and better firm performance than covenant-lite loan borrowers without dual ownership. By performing a difference-in-difference test and sub-sample regression estimates to only covenant-lite loan borrowers with dual ownership, I rule out the possibility that low default risk and strong firm performance during the presence of dual ownership is a result of "cherry-picked" investments in equities. Overall, my estimates support ongoing monitoring hypothesis, and presence of dual ownership may function as an effective monitoring mechanism regulating covenant-lite loan borrowers' creditworthiness and reducing default risk.

Download or read book Essays on the Syndicated Loan Market written by Wei Zhai and published by . This book was released on 2018 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Credit Risk written by and published by . This book was released on 2015 with total page 151 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Overrated Credit Risk written by Dion Bongaerts and published by . This book was released on 2010 with total page 153 pages. Available in PDF, EPUB and Kindle. Book excerpt: