.S. bank securities, hedging positions, and corporate credit. Banks that experienced larger losses on their securities during … the 2022-2023 monetary tightening cycle extended less credit to firms. This spillover effect was stronger for available …

market power, or credit risk. Variation in credit risk does materially affect monetary policy transmission to corporate bonds …

light on the distributional consequences at both the individual and regional levels. We find that credit supply factors … are even more pronounced for young and middle-income borrowers who find themselves excluded from the credit market. Also …

Corporate credit lines are drawn more heavily when funding markets are more stressed. This covariance elevates expected … bank funding costs. We show that credit supply is dampened by the associated debt-overhang cost to bank shareholders. Until … 2022, this impact was reduced by linking the interest paid on lines to credit-sensitive reference rates such as LIBOR. We …

The 'credit channel' theory of monetary policy transmission holds that informational frictions in credit markets worsen … components to monetary policy shocks and describe how the credit channel helps explain the facts. We discuss two main components … credit aggregates are not valid tests of this theory …

Using confidential regulatory firm-bank-loan level data from the U.S., we document four new facts about the credit … market. First, private SMEs typically utilize all available bank credit which comprises their entire balance sheet debt …, compared to large listed firms who can switch between corporate bonds and drawing from credit lines. Second, SMEs borrow …