Government guarantees are often offered as an explanation for why large financial firms borrow more cheaply than small financial firms. However large firms generally borrow more cheaply across a wide range of non-financial industries. We show that the difference in borrowing costs between large...

Estimates of investor expectations of government support of large financial firms are often based on large financial firms' lower borrowing costs relative to smaller financial firms. Using pricing data on credit default swaps (CDS) and corporate bonds over the period 2004 to 2013, however, we...

Expectations of government support for large financial firms are often based on their lower borrowing costs relative to smaller financial firms. However, large financial firms are not unique in this regard: larger firms enjoy lower borrowing costs in several industries. We show that size-related...