collateral and various covenants on syndicated loan risk. It addresses firms’ self-selection of these contract terms by analyzing … how a loan’s collateral and covenants affect: 1) the difference between the loan’s credit rating and the senior, unsecured … loan’s credit spread. The results show that the rating agency and investors agree that a collateral requirement, a capital …

of collateral. The results highlight some interesting nuances which are not characteristic of the properties of models … be negatively related to an entrepreneur.s initial wealth. Our model shows that banks can use collateral as a means of … of raising the amount of the debt that is effectively securitized through borrower collateral. Thus, through this …

collateral? The literature shows that unobservability of the project’s returns implies that the high-risk borrower is more … inclined to pledge outside collateral than is the low-risk borrower. However, this finding does not hold when the bank can … collateral enables the low-risk entrepreneur to select himself, but high value outside collateral has no sorting potential at all …