We offer evidence of a new stylized feature of corporate financing decisions: the tendency of managers to rely more on debt financing when earnings prospects are poor. We term this 'leaning against the wind' and consider three possible explanations: market timing, precautionary financing, and...

We study how differences in the aggregate structure of corporate debt affect the transmission of monetary policy in a panel of euro area countries. We find that standard policy tightening shocks raise the cost of loans relative to corporate bonds. In economies with a high share of bond finance,...

We study how differences in the aggregate structure of corporate debt affect the transmission of monetary policy in a panel of euro area countries. Consistent with the bank lending view of transmission, we find the cost of bank loans to rise relative to the cost of corporate bonds in response to...