Showing 1 - 10 of 10
The Basel I Accord introduced a discontinuity in required capital for undrawn credit commitments. While banks had to set aside capital when they extended commitments with maturities in excess of one year, short-term commitments were not subject to a capital requirement. The Basel II Accord...
Persistent link: https://www.econbiz.de/10012916405
Persistent link: https://www.econbiz.de/10003850585
The Basel I Accord introduced a discontinuity in required capital for undrawn credit commitments. While banks had to set aside capital when they extended commitments with maturities in excess of one year, short-term commitments were not subject to a capital requirement. The Basel II Accord...
Persistent link: https://www.econbiz.de/10011868462
Persistent link: https://www.econbiz.de/10011777280
Many have claimed that credit default swaps (CDSs) have lowered the cost of debt financing to firms by creating new hedging opportunities and information for investors. This paper evaluates the impact that the onset of CDS trading has on the spreads that underlying firms pay to raise funding in...
Persistent link: https://www.econbiz.de/10013156146
The Basel I Accord introduced a discontinuity in required capital for undrawn credit commitments. While banks had to set aside capital when they extended commitments with maturities in excess of one year, short-term commitments were not subject to a capital requirement. We use this difference to...
Persistent link: https://www.econbiz.de/10012839743
Persistent link: https://www.econbiz.de/10012203658
Persistent link: https://www.econbiz.de/10014528724
Persistent link: https://www.econbiz.de/10015413353
Firms with debt overhang, measured as total borrowing to cash-flow, experience 2% slower asset growth during ordinary times and up to 3% slower growth during a crisis, compared to similar firms without debt overhang. These patterns extend to a firm's growth in employment and capital...
Persistent link: https://www.econbiz.de/10013218957