This paper studies the impact of higher bank capital requirements on corporate lending spreads. We conduct an empirical … analysis using granular bank- and loan-level data for Switzerland. Overall, we find a positive relationship between capital …

per year. In competitive lending markets, a change of this magnitude would have doubled or tripled spreads, because bank …

bank fails to meet a distress threshold. The conversion increases the issuer's loss-absorption capacity, but results in …

largest purchasers of bank bonds in Europe. We develop a stylized model with a direct financial connection between banking and … CoCo bond into bank shares. In order to check the robustness of our findings, we consider different CoCo designs (write …-down factor, trigger value, holding time of bank shares) and compare the resulting capital requirements with those for holding non …

largest purchasers of bank bonds in Europe. We develop a stylized model with a direct financial connection between banking and … CoCo bond into bank shares. In order to check the robustness of our findings, we consider different CoCo designs (write …-down factor, trigger value, holding time of bank shares) and compare the resulting capital requirements with those for holding …