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Rampini, Adriano A.; Viswanathan, S. - National Bureau of Economic Research - 2025

We argue that firms' assets, especially their tangible assets, serve as collateral restricting both secured and …

Persistent link: https://www.econbiz.de/10015409908

Benmelech, Efraim - 2008

We examine how collateral affects the cost of debt capital. Theories based on borrower moral hazard and limited … pledgeable income predict that collateral increases the availability of credit and reduces its price. Testing these theories is … complicated by the very selection problem which they imply: creditors will demand collateral precisely from those borrowers who …

Persistent link: https://www.econbiz.de/10012464773

Financial Constraints, Asset Tangibility, and Corporate Investment

Almeida, Heitor - 2006

When firms are able to pledge their assets as collateral, investment and borrowing become endogenous: pledgeable assets …

Persistent link: https://www.econbiz.de/10012466582

The Decline of Secured Debt

Benmelech, Efraim - 2020

We document a steady decline in the share of secured debt issued (as a fraction of total debt) in the United States over the twentieth century, with some pickup in this century. Superimposed on this secular trend, the share of secured debt issued is countercyclical. The secular decline in...

Persistent link: https://www.econbiz.de/10012479161

Economic Growth and Bank Innovation

Gorton, Gary; He, Ping - National Bureau of Economic Research - 2021

Based on archival and survey data we show that the maturity of U.S. business loans has been continuously increasing since the mid-1930s when banks invented the term loan. Concurrently, bank innovation first involved the invention of credit analysis and covenant design. Later, bank innovation...

Persistent link: https://www.econbiz.de/10012660004

Contingent Credit Under Stress

Acharya, Viral V.; Jager, Maximilian; Steffen, Sascha - National Bureau of Economic Research - 2023

Over the past two decades, banks have increasingly focused on offering contingent credit in the form of credit lines as a primary means of corporate borrowing. We review the existing body of research regarding the rationales for banks' provision of liquidity insurance in the form of credit...

Persistent link: https://www.econbiz.de/10014437040

The Benefits and Costs of Secured Debt

Benmelech, Efraim - National Bureau of Economic Research - 2024

cornerstone of credit markets in most societies since antiquity. The ability to seize and sell collateral reduces the creditor …

Persistent link: https://www.econbiz.de/10014528392

Creditor-on-Creditor Violence and Secured Debt Dynamics

Antill, Samuel; Wang, Neng; Jiang, Zhaoli - National Bureau of Economic Research - 2024

Secured lenders have recently demanded a new condition in distressed debt restructurings: competing secured lenders must lose priority. We model the implications of this "creditor-on-creditor violence" trend. In our dynamic model, secured lenders enjoy higher priority in default. However,...

Persistent link: https://www.econbiz.de/10015056182

Does Loan Securitization Expose Borrowers to Non-Bank Investor Shocks?—Evidence from Insurers

Bhardwaj, Abhishek; Ge, Shan; Mukherjee, Saptarshi - National Bureau of Economic Research - 2025

CLOs fund 65% of syndicated loans, theoretically insulating borrowers from bank and idiosyncratic investor shocks. However, concentrated capital and sticky relationships expose firms to idiosyncratic shocks to insurers, the largest CLO investors. We find that: 1) insurers experiencing favorable...

Persistent link: https://www.econbiz.de/10015326443

Businesses and Borrowing during the Roaring '20s and at the Onset of the Great Depression

Richardson, Gary; Angel, Marco del - National Bureau of Economic Research - 2024

Which firms relied on commercial banks for credit and which firms did not at the onset of the Great Depression would seem to be an important question given the vast literature discussing banking distress in the United States during the 1930s. The question, however, has not been answered. This...

Persistent link: https://www.econbiz.de/10015072860