Using a sample of syndicated loans to private equity (PE)-backed IPO companies, we examine how a third-party bank relationship influences the syndicate structure of a loan. We find that a stronger relationship between the lead bank and the borrower's PE firm enables the lead bank to retain a...

This paper studies firms’ response to realizations of investor demand (i.e., credit supply) when underwriters take orders to place new offerings of corporate bonds. Issuers frequently “upsize” offering amounts when the order book is oversubscribed, delivering a significant increase in...

We examine how sovereign wealth fund (SWF) investments affect target firms’ cost of debt. Using a large sample across 39 countries from 2004 to 2019, and applying a difference-in-differences (DiD) approach, we find that the loan spread of target firms decreases after equity investment by SWFs....