We study the effects of short- and longer-term U.S. interest rates on risk taking in the global market for U.S. dollar syndicated term loans. Because banks tend to originate these loans with intent to sell to non-bank investors, we examine risk taking by the broad financial system. To the extent...

We study how low interest rates in the United States affect risk taking in the market of cross-border leveraged corporate loans. To the extent that actions of the Federal Reserve affect U.S. interest rates, our analysis provides evidence of a cross-border spillover effect of monetary policy. We...